Federal deficit hits $9.8bn amid rising public debt charges and program expenses

The federal government’s deficit reached $9.8bn for the April-to-August period, according to the Financial Post.  

This compares to a deficit of $4.3bn for the same period last year, as noted in the Finance Department’s latest fiscal monitor. 

Revenue for the period increased by $16.7bn, or 9.3 percent, over last year, with growth reported across all major revenue categories.  

Program expenses, excluding net actuarial losses, rose by $17.9bn, representing an 11 percent increase. 

This rise was due to Ottawa’s higher spending on direct program expenses, along with major transfers to individuals, provinces, territories, and municipalities. 

Public debt charges increased by $4.4bn, up 23.1 percent, primarily due to higher interest rates on marketable bonds and treasury bills. Net actuarial losses remained unchanged.