Canadian government spending is growing faster than revenue, and interest payments are continuing to climb, as Finance Minister Chrystia Freeland prepares to deliver her budget next month.
Program expenses from April 2023 to January were 6.7 per cent higher than the same period during the previous year, “reflecting increases across all major categories of spending,” according to data released Friday by the Department of Finance.
Interest payments are up 36 per cent compared to the previous year, while revenues are up 3 per cent. The deficit for the 2023-2024 fiscal year is at $25.7 billion (US$18.9 billion) so far.
In Canada, the government’s fiscal year begins on April 1, so Friday’s numbers represent 10 months of results.
It’s the last glimpse of the fiscal position before Freeland delivers her budget on April 16. Freeland has pledged fiscal restraint, saying she plans to keep deficits contained to around $40 billion a year from now until 2026.