Ottawa ran $1.8B deficit in July
Between April and July of this year, federal revenues were $2.3 billion lower compared with last year, while program expenses were $6.5 billion higher. (Adrian Wyld/Canadian Press)
By comparison, Ottawa had a $5.2-billion surplus during the same April-to-July stretch last year, according to the Finance Department’s monthly fiscal monitor.
This year in July alone, the report said the government books showed a deficit of $1.8 billion — down from a $200-million surplus a year earlier. The July data included a $1.4-billion increase in program expenses, an $800-million decline in revenues and a $200-million decrease in public-debt charges.
Between April and July, the numbers show federal revenues were $2.3 billion lower compared with last year, while program expenses were $6.5 billion higher. The government’s debt-servicing costs were $800 million lower over the time period, mostly because of the impacts of weaker inflation on bonds and a lower average interest rate.
Earlier this week, the federal budget watchdog said government spending under the Liberal government over the first three months of the fiscal year reached its highest mark in at least six years.
Higher program spending
On Friday, the fiscal monitor said the bulk of the added spending between April and July was due to a $3.9-billion increase in direct program expenses compared with a year ago — a spike of 11.9 per cent.
A closer look at the increase showed that transfer payments were up $2 billion, or 21 per cent. Finance said the bigger number was a reflection of year-over-year differences in the timing of the payments and an increase in disaster assistance.
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