Canada’s budget deficit for first six months of 2024/25 expands to C$13.01 billion

OTTAWA, Nov 29 (Reuters) – Canada’s budget deficit for the first six months of the 2024-25 fiscal year jumped by more than a half to C$13.01 billion ($9.28 billion) as program expenses and debt payment costs rose faster than the gain in revenues, the finance ministry said on Friday.

The deficit in the same period a year earlier had been C$8.17 billion, it said in a statement.

Program expenses rose 11.2% on increases across all major categories of spending. Public debt charges jumped by 22.5% largely because of higher interest rates, the ministry said.

Year-to-date revenues grew by 9.6%, largely reflecting higher personal and corporate income tax revenue and revenue from other taxes and duties.

On a monthly basis, Canada posted a deficit of C$3.17 billion in September, slightly narrower than C$3.88 billion deficit seen in September 2023.

($1 = 1.4017 Canadian dollars)