Finance says federal deficit hits almost $69B over first half of fiscal yr

OTTAWA — The federal authorities ran a deficit of almost $69 billion over the primary half its fiscal yr, virtually $130 billion lower than the treasury pumped out throughout the identical stretch one yr earlier.

The Finance Division’s fiscal monitor says the budgetary deficit between April and September was $68.6 billion, down from the $198.1 billion recorded over the identical months in 2020 when COVID-19 first struck.

The report Friday says the deficit now displays present financial challenges brought on by COVID-19, together with ongoing public well being restrictions.

Program spending, excluding internet actuarial losses, between April and September was $225 billion, a decline of about $83.9 billion, or27.2 per centdrop, from the $308.9 billion in the identical interval one yr earlier.

The decline largely displays decrease quantities paid in emergency advantages to people and companies.

Yr-over-year, emergency advantages to employees declined by 66.2 per cent, or $26.4 billion, toalmost $13.5 billion from virtually $39.9 billion, whereas the wage subsidy declined by 61 per cent to $17.2 billion from $44.1 billion between April and September.

The Finance Division says the decline of $26.9 billion for the wage subsidy program displays drops within the variety of eligible employees and the typical subsidy per worker.

Income between April and September reached over $175.8 billion, which was a $47-billion, or 36.5 per cent,improve from the$128.8 billion in the identical interval of the earlier fiscal yr, pushed primarily by larger tax revenues.

Public debt expenses had been virtually $11.7 billion, up $1.3 million or 12.5 per cent fromthe virtually $10.4 billion recorded between April and September of 2020, which largely displays larger shopper worth index changes on actual return bonds.

This report by The Canadian Press was first printed Nov. 26, 2021.

The Canadian Press

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