Canada’s federal government in Ottawa has reported a budget deficit of $1.2 billion during the first four months of its current fiscal year.
The budget deficit for the April through July period comes after the government recorded a surplus of $6.3 billion in the same period of 2022.
The federal Finance Department said that its revenues rose $2.8 billion, or 2%, mainly due to higher interest revenue being collected.
At the same time, program expenses increased $7.2 billion, or 6%, pushing the government into a deficit.
Higher interest rates have also pushed up Canada’s public debt charges by $3.3 billion, an increase of 30% from a year earlier.
The Finance Department said that its net actuarial losses decreased by $200 million, or 4.7%, between April and July of this year.
The federal government’s fiscal year runs from April 1 to March 31.
