MNI: Canada Apr-Jun Budget Deficit CAD3.3B From Prior CAD2.9B

Canada's budget deficit widened to CAD3.3 billion in the first three months of the fiscal year from CAD2.9 billion in the previous period, a combination of lower interest costs and higher revenue from counter-tariffs that are being lifted Sept. 1.

Revenue for the fiscal year that began April 1 rose 2.9% and program spending rose 4.6%, the Finance Department said Friday in a Fiscal Monitor report. Public debt charges fell about CAD100 million or 0.6%, a reversal from earlier months of increases "as the impact of lower interest rates on treasury bills was largely offset by higher average effective rates on an increased stock of marketable bonds."

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, or about 2% of GDP. Parliament's budget officer told lawmakers the deficit could reach CAD70 billion and the CD Howe think tank earlier estimated a CAD92 billion shortfall. (See: MNI INTERVIEW: Carney Minority Govt To Last On Economy- Raitt)