Canada records C$314.0 billion budget deficit in fiscal 2020/21
- Compared to the previous fiscal year revenues dropped 10.4%, while program expenses jumped 80.1%, largely due to emergency transfers to individuals, businesses and the provinces.
- On a monthly basis, Canada posted a deficit of C$31.44 billion in March 2021, compared to a deficit of C$14.79 billion recorded in March 2020.
OTTAWA: Canada's budget deficit in fiscal 2020/21 swelled to C$314.00 billion ($260.15 billion) from a deficit of C$21.77 billion in the previous year, as Ottawa spent heavily to fight the COVID-19 pandemic, preliminary data from the federal finance ministry showed on Friday.
Compared to the previous fiscal year revenues dropped 10.4%, while program expenses jumped 80.1%, largely due to emergency transfers to individuals, businesses and the provinces.
"The government's 2020-21 financial results reflect the economic downturn and temporary measures implemented through the government's Economic Response Plan to support Canadians and businesses facing hardship as a result of the COVID-19 outbreak," Finance said.
On a monthly basis, Canada posted a deficit of C$31.44 billion in March 2021, compared to a deficit of C$14.79 billion recorded in March 2020.
Monthly revenues increased by 33.8%, driven by an increase in tax and other revenues, while program expenses were up 69.0%, again on COVID-19 related spending.
The final results for the fiscal year will include additional adjustments, including more than C$7 billion in measures announced in Budget 2021, the Finance ministry said.
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