Canada’s budget deficit falls to C$95.57 billion in fiscal 2021/22 as pandemic wanes

By Julie Gordon

Canada’s budget deficit in fiscal 2021/22 shrank to C$95.57 billion ($75.02 billion) from C$314.00 billion in the previous year, as emergency spending on the COVID-19 pandemic eased, preliminary data from the finance ministry showed on Friday.

Revenues for the fiscal year grew by 32.5%, mostly on higher tax revenues, while expenses were down 20.8%, as the government spent less on aid to businesses and individuals.

On a monthly basis, Canada posted a deficit of C$25.75 billion in March, compared to a C$31.44 billion deficit in March 2021.

Revenues were up 14.2% in March compared with a year earlier, again on higher tax revenues. Expenses were down 1.4%, reflecting less emergency transfers offset by costs for disaster assistance and environmental liabilities.

($1 = 1.2739 Canadian dollars)