Higher rebates and public debt costs drive Canada's deficit up from $19.1 billion last year
The Finance Department reports that the federal deficit reached $22.7bn between April and November, as per BNN Bloomberg.
This marks an increase compared with the $19.1bn deficit recorded over the same period last year.
According to the monthly fiscal monitor, revenues rose by $29.5bn, or 10.5 percent, compared to the same timeframe in the previous fiscal year.
Meanwhile, program expenses, excluding net actuarial losses, increased by $30bn, or 11.3 percent.
This rise was attributed to higher spending on elderly and employment insurance benefits, as well as a 54 percent increase in rebates, partly due to the introduction of the Canada Carbon Rebate for small businesses.
Public debt charges grew by $5.4bn, or 17.4 percent, largely because of higher average interest rates on the outstanding stock of marketable bonds and treasury bills, alongside an increase in the stock of marketable bonds.
Net actuarial losses, however, declined by $2.4bn, or 46.8 percent.
