Canada’s 2022-23 fiscal year budget deficit shrinks to C$41.31 billion

CANADA’S budget deficit in fiscal 2022/23 shrank to C$41.31 billion (S$41 billion) from C$95.57 billion in the previous year as a post-pandemic economic rebound spurred tax revenue and spending on support measures fell, the finance ministry said on Friday (May 26).

Revenues rose 8.6 per cent in the period from April 2022 to March 2023, “reflecting broad-based improvement across revenue streams due to economic growth and the waning fiscal and economic impact of Covid-19,” the finance ministry said.

Programme expenses were down 6.5 per cent, primarily driven by lower transfers to individuals and businesses due to expiring temporary Covid measures.

On a monthly basis, Canada posted a deficit of C$44.31 billion in March, compared to the C$25.75 billion recorded in March 2022. REUTERS