Canada government spending growing twice the pace of revenue
BNN Bloomberg
Canadian government spending is growing faster than revenue while interest payments are continuing to climb, as Finance Minister Chrystia Freeland prepares to deliver her budget next month.
Program expenses excluding actuarial losses from April 2023 to January were 6.7 per cent higher than the same period during the previous year, “reflecting increases across all major categories of spending,” according to data released Friday by the Department of Finance.
Interest payments have totaled $39.2 billion (US$28.8 billion) over that period, up 36 per cent compared to the previous year, while revenues were up 3 per cent. The deficit for the 2023-2024 fiscal year is $25.7 billion so far.
Total tax revenues are up 1.1 per cent fiscal year-to-date, driven by personal income tax and other excise taxes. Corporate tax revenues are down 14.7 per cent, reflecting a slowing in economic growth.
