MNI: Canada 2024-25 Budget Deficit Unexpectedly Narrows

Canada's preliminary budget deficit for the fiscal year that ended in March narrowed to CAD43.2 billion from CAD50.9 billion in the previous year the finance department said Friday, a surprising result through a period where the government was rolling out pre-election spending pledges.

Revenue grew 11% according to the Fiscal Monitor report while program spending growth was slower at 9% over the fiscal year. The finance department cautions final figures are coming later this year, and the bottom line can change by several billion dollars as the books are closed.

Charges on the public debt rose 13% reflecting higher market interest rates and a larger stock of debt.

For the month of March the budget deficit shrank to CAD23.9 billion from CAD33.6 billion a year ago.

Prime Minister Mark Carney won the April 28 election with a plan to boost the deficit to CAD62.3 billion this fiscal year, about a record in cash terms outside of the pandemic, and about 2% of GDP. Parliament's budget office projected a CAD46.8 billion deficit this year excluding any campaign promises. (See: MNI INTERVIEW: Carney Minority Govt To Last On Economy- Raitt)