Ottawa runs $2.8-billion deficit in November, slightly lower than last year
The federal government ran a $2.8-billion deficit in November, according to the latest Finance Canada report on Ottawa's bottom line.
The November figure is an improvement over the $3.3-billion deficit posted in November 2016.
Over the first eight months of the 2017-18 fiscal year that began April 1, the federal deficit stood at $9.1-billion, compared to a $12.7-billion deficit during the same eight-month period the previous year.
Spending trends over the first eight months of the current fiscal year show revenues are up 4.8 per cent thanks to increases from personal, corporate and sales taxes. Program expenses are up 3.2 per cent, including increased spending on benefits for families with children and the elderly.
Earlier this week, Parliamentary Budget Officer Jean-Denis Fréchette released a report that projected this year's federal deficit will come in at $18.5-billion, which would be an improvement over the $19.9-billion projected by Finance Minister Bill Morneau in his fall economic update.
The Liberal Party promised during the 2015 election campaign to run short term deficits of no more than $10-billion a year before returning to surplus in 2019. The government has since abandoned that plan and has not set a timeline for erasing the deficit.
A long-term projection released by Finance Canada in December found that federal finances are on a path to balance by the 2040s. However if the projections were based on some of the more optimistic projections from private sector economists, a surplus could materialize as soon as 2023.
That report also showed that even with annual deficits, the size of the federal debt is on track to decline significantly over time when measured as a percentage of GDP.
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The federal government ran a $2.8-billion deficit in November, according to the latest Finance Canada report on Ottawa's bottom line.
The November figure is an improvement over the $3.3-billion deficit posted in November 2016.
Over the first eight months of the 2017-18 fiscal year that began April 1, the federal deficit stood at $9.1-billion, compared to a $12.7-billion deficit during the same eight-month period the previous year.
Spending trends over the first eight months of the current fiscal year show revenues are up 4.8 per cent thanks to increases from personal, corporate and sales taxes. Program expenses are up 3.2 per cent, including increased spending on benefits for families with children and the elderly.
Earlier this week, Parliamentary Budget Officer Jean-Denis Fréchette released a report that projected this year's federal deficit will come in at $18.5-billion, which would be an improvement over the $19.9-billion projected by Finance Minister Bill Morneau in his fall economic update.
The Liberal Party promised during the 2015 election campaign to run short term deficits of no more than $10-billion a year before returning to surplus in 2019. The government has since abandoned that plan and has not set a timeline for erasing the deficit.
A long-term projection released by Finance Canada in December found that federal finances are on a path to balance by the 2040s. However if the projections were based on some of the more optimistic projections from private sector economists, a surplus could materialize as soon as 2023.
That report also showed that even with annual deficits, the size of the federal debt is on track to decline significantly over time when measured as a percentage of GDP.
https://www.theglobeandmail.com/new...=rss&click=sf_globe&__twitter_impression=true
