Canada budget deficit swells to C$248 billion over first nine months of 2020/21
Reuters
Published Feb 26, 2021 02:54PM ET
OTTAWA, Feb 26 (Reuters) - Canada's budget deficit from April to December widened to C$248.17 billion ($195.8 billion) from a deficit of C$10.97 billion a year earlier, as the government provided massive pandemic supports, the finance ministry said on Friday.
"The unprecedented shift in the government’s financial results reflects the severe deterioration in the economic situation and temporary measures implemented ... as a result of the COVID-19 outbreak during this period," it said in a statement.
Revenues dropped by 15.6% reflecting a broad-based decline including lower tax revenues. Program expenses, meanwhile, jumped 86.1% largely due to emergency transfers to individuals, businesses and the provinces.
On a monthly basis, Canada posted a deficit of C$16.15 billion in December 2020, compared to the C$782 million surplus recorded in December 2019.
Monthly revenues were down 2.4% on a decline in other revenues, which include Crown corporation profits and returns on investments among other things. Program expenses climbed 59.9%, again on COVID-19 response measures.
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Written By: Reuters
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