OTTAWA, Dec 23 (Reuters) – Canada recorded a C$174 million ($127.91 million) budget deficit for the first seven 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$72.25 billion deficit in the period from April to October 2021.
Year-to-date revenues were up 17.6% on a broad-based improvement in income streams. Program expenses were down 15.6%, largely reflecting lower transfers to individuals and businesses as COVID-19 support wound down, the finance ministry said.
“The government’s 2022-23 financial results continue to improve compared to 2021-22 as the fiscal impact of the COVID-19 crisis and the unprecedented level of temporary COVID-19 response measures wane,” the ministry said in a statement.
Public debt charges increased 35.7% this fiscal year, primarily driven by 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$1.90 billion in October, compared to the C$3.68 billion deficit recorded a year ago.
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($1 = 1.3603 Canadian dollars)
(Reporting by Ismail Shakil, editing by Steve Scherer)
((ismail.shakil@tr.com))