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

By Julie Gordon

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

Revenue for the year rose 32.5%, mainly due to higher tax revenue, while spending fell 20.8% as the government spent less on helping businesses and individuals .

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

Revenues rose 14.2% in March from a year earlier, again on the back of higher tax receipts. Spending fell 1.4%, reflecting fewer emergency transfers offset by disaster relief costs and environmental liabilities.

($1 = 1.2739 Canadian dollars)