Government deficit smaller than expected, but debt rises -

Government deficit smaller than expected, but debt rises

Federal deficit roughly $5 billion less than forecast, while debt rose $15 billion year over year

The Peace Tower is seen on Parliament Hill in Ottawa on November 5, 2013. THE CANADIAN PRESS/Sean Kilpatrick

The Peace Tower is seen on Parliament Hill in Ottawa on November 5, 2013. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA – The federal Finance Department says the government ran a smaller deficit than it was expecting in the spring budget, ending its 2016-17 fiscal year with a deficit of $17.8 billion.

That compared with a $23-billion deficit that was forecast in the spring budget.

The smaller-than-expected deficit came as revenue was $1.4 billion higher than expected due to higher GST revenue and non-resident income tax.

Program spending was also $3.7 billion lower than forecast due to lower-than expected infrastructure transfer payments; lower-than-expected bad debt expenses; and a downward adjustment to the expenses at the St. Lawrence Seaway Management Corp.

Public debt charges were about $100 million lower than forecast due to lower interest rates.

The deficit for the 2016-17 fiscal year compared with a $1-billion deficit for the 2015-16 fiscal year.

Compared with a year ago, government revenues were down $2.0 billion or 0.7 per cent compared with the previous year due to a drop in personal income tax revenue, employment insurance premium revenue and other revenues, offset in part by an increase in GST revenue.

Program spending rose by $16.2 billion or 6.0 per cent due to increases in major transfers to individuals, major transfers to other levels of government and other transfer payments. Public debt charges were down $1.3 billion or 5.2 per cent due to lower interest rates.

The federal debt was $631.9 billion at March 31, 2017, up from $616.0 billion a year earlier.

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Government deficit smaller than expected, but debt rises

  1. The mainstream media playing along with the Trudeau Liberals “expectations” game.

    The deficit is up by nearly $20 billion dollars over last year. Because Morneau exaggerated the size the deficit would be in the spring does not make it “smaller”.

    Plus, it is actually a much worse deterioration in the fiscal position because the Liberals loaded up several billion dollars of extra spending at the end of the previous year, just after they took office, to make the previous year look worse. So it is really closer to a $30 billion dollar increase in the deficits if one takes away all the Liberal shenanigans in stuffing spending to make their deficits appear smaller.

    • The IMF doesn’t appear to know this. Perhaps you could write and tell them.

      • The IMF are the bankster stormtroopers of the global 0.01%’er plutocrats. They love countries going into debt beyond their means so they can then be easily asset-stripped.

        • And what, pray tell, is the IMF doing with all this money and the assets they are supposedly stealing?

      • When Harper left our national debt was 80-85% held domestically. Are you saying that Canada has had to go to the IMF under Trudeau to borrow $$$? Where did you get your info from? Are you just speculating? I kind of think you just made the whole IMF thing up!

        As soon as JT became PM one of his very first decisions was to raise the funding per/person by 3%. This is in the Auditor Generals report and it took place before before the end of 2015. Since then — the per/person spending has increased by 22% and we are currently at the highest levels since the mid-40s in spending. This explains perfectly why JT is pushing his “tax reform”. He needs to increase the government coffers to pay for the extra $$$.

        Now according to the Liberal “plan” — those per/person $$$ are supposed to start decreasing at the beginning of 2018.

    • My mistake wheat guy.
      When I first heard this I thought it was good news.
      You and Sheer have set us straight. I will check some more Ottawa media who will most certainly confirm your view. A really bad for the Canadian economy overall.

      • I’ve heard the CN tower is on ebay.

      • I’m pretty convinced that Evan Dyer and Hannah Thibideau get the scripts for their live shots on Newsworld directly from the PMO press office.

        The deficit was never $28 billion dollars. Last year, there was probably a $5 billion surplus, loaded up with a last minute spending free-for-all when Trudeau got elected, to push it into a small official deficit. This year, the deficit came in a $18 billion dollars. i.e. A massive increase in the deficit, over twice the “limited” deficit they promised in the election. i.e. another broken promise.

        The deficit did not decrease. Saying it did is just Liberal and their mainstream media flackies spinning.

        • Well you can read the official report from the Auditor-General online.

          Oh wait… he in on the plot too?

  2. 17.8 billion deficit each year for four more years. Cannot afford these Liberals running up the deficit again. James Flaherty must be rolling over in his grave. The Socialist pandering media to these Liberal makes one want to throw up. Harper should have funded the Sun News Network like the CBC. Huge mistake. Harper’s Senate seat fail another huge mistake.

    • Just electing Harp was a huge mistake.