The Canadian government is spending more money than it's bringing in, and the amount of money paid for borrowing is still going up, as Finance Minister Chrystia Freeland gets ready to present her budget next month.
From April 2023 to January, program expenses were 6.7 percent higher compared to the same period in the previous year, showing increases in all major spending categories, as per data from the Department of Finance released on Friday.
Interest payments have increased by 36 percent from the previous year, while revenues are up by three percent. The deficit for the 2023-2024 fiscal year is currently at $25.7 billion.
In Canada, the government’s financial year starts on April 1, so the numbers released on Friday reflect 10 months of results.
- Housing will be the main focus of the federal budget
- Ottawa expected to fall short of deficit goal: Desjardins
- Majority of Canadians want Ottawa to decrease spending: survey
This is the final look at the financial situation before Freeland announces her budget on April 16. Freeland has promised to be fiscally conservative, stating that she aims to keep deficits limited to about $40 billion per year until 2026.
