Canada Deficit Near $14b

The federal government ran a budgetary shortfall of $14 billion over the first nine months of the fiscal year, compared with a $3.2 billion surplus over the same period a year earlier. Canada’s Finance Department’s monthly fiscal monitor says federal program expenses between April and December rose $16.7 billion, or 8.8%, compared with the same stretch a year ago, CBC reported. A closer look at the numbers shows that major government transfers to individuals, including seniors benefits, were up $5.7 billion, or 9.3%, while direct-program spending rose $8.9 billion, or 11.3%. Government revenues, such as those pulled in from income taxes, were down $1.9 billion or 0.9% compared with 2015-16. The (Prime Minister Justin) Trudeau government is projecting a $25.1-billion deficit for 2016-17 as part of its plan to run several double-digit shortfalls over the coming years in an effort to lift the economy through infrastructure investments and larger child benefits. The finance department also says Ottawa posted a $1.3 billion deficit in December alone—compared to a $2.2 billion surplus in December 2015.