The federal government posts a deficit of $200 million for the period from April to October

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The federal government posts a deficit of $200M for the period from April to October

Chrystia Freeland, Minister of Finance and Deputy Prime Minister of Canada.

The Canadian federal government posted a deficit of $0.2 billion in the first seven months of fiscal year 2022-23. The projected deficit for the full year remains at $36.3 billion.

In its monthly report, the Department of Finance indicates that the deficit between April and October is significantly lower than the $72.3 billion recorded in the same period last year.

Compared to the same seven months of the Previous fiscal year, government revenues increased by $36.6 billion, or 17.6%, as revenue streams continued to improve.

Program spending decreased by $40.4 billion, or 15.6%, primarily due to the expiration of COVID-19 related measures.

Since its election in 2015, the government of Justin Trudeau has posted only one surplus. The projected deficit of $36.3 billion for 2021-22 would be the fourth highest in his reign, but the smallest since the start of the COVID-19 pandemic.

  • 2015: -$10.0 billion
  • 2016: -$15.4 billion
  • 2017: -$10.4 billion
  • 2018: +$0.5 billion
  • 2019: -$37.5 billion
  • 2020: -$291.9 billion
  • 2021: -$99.0 billion
  • 2022 (anticipated): -$36.3 billion

Source: Statistics Canada

higher interest and persistently high inflation pushed up the cost of public debt charges by $5.2 billion, or 35.7%, compared to the same period last year.

Net actuarial losses decreased by $0.3 billion, or 4.7%.

In its fall economic statement, Finance Minister Chrystia Freeland estimated that the deficit for the entire 2021-2022 fiscal year would reach $36.3 billion. His ministry's monthly report maintains this estimate.

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