© Reuters. People shop at the Eaton Centre in Toronto, Ontario, Canada November 22, 2022. REUTERS/Carlos Osorio
OTTAWA, Jan 27 (Reuters) – Canada recorded a C$3.55 billion ($2.67 billion) budget deficit for the first eight months of the 2022/23 fiscal year, partly due to higher debt charges, the finance ministry said on Friday.
By comparison, Canada posted a C$73.70 billion deficit in the period from April to November 2021.
Year-to-date revenues were up 14.8% on a broad-based improvement in income streams. Program expenses were down 13.9%, largely reflecting lower transfers to individuals and businesses as COVID-19 support wound down, the finance ministry said in a statement.
Public debt charges increased 35.8% this fiscal year, primarily reflecting higher interest rates and higher inflation adjustments on real return bonds, which have a coupon that is linked to the level of the consumer price index.
On a monthly basis, Canada posted a deficit of C$3.38 billion in November, compared to the C$1.44 billion deficit recorded a year ago.
($1 = 1.3310 Canadian dollars)