RSS Canada budget blow-out: 62bn CAD deficit vs. 40bn expected previously

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 RSS Canada budget blow-out: 62bn CAD deficit vs. 40bn expected previously

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Canada fiscal update

  • Canada fiscal update sees 2023/24 deficit of C$61.9 billion vs C$40 billion expected in April, breaching fiscal anchor of maintaining 2023/24 deficit at or below $40.1 billion.
  • Canada update: Projected 2023/24 deficit includes Indigenous contingent liabilities of C$16.4 billion and adjustments for COVID-19-related support.
  • Canada update sees 2024/25 deficit of C$48.3 billion, 1.6% of GDP, vs C$39.8 billion in April.
  • Canada update sees 2024/25 federal debt-to-GDP ratio of 41.9% vs 41.9% in April, 2025/26 ratio of 41.7% vs 41.5%.
  • Canada update sees federal debt-to-GDP ratio steadily declining to 38.6% in 2029/30.
  • Canada update sees real GDP growth of 1.3% in 2024 vs 0.7% in April, 1.7% in 2025 vs 1.9%, 2.1% in 2026 vs 2.2%, 2.1% in 2027 vs 2.1%, 2.0% in 2028 vs 2.0%.
  • Canada update sees 2025/26 deficit of C$42.2 billion vs C$38.9 billion in April; sees 2026/27 deficit of C$31.0 billion vs C$30.8 billion, narrowing to C$23.0 billion in 2029/30.
  • Canada update: Public debt charges in 2024/25 set to be C$53.7 billion vs C$54.1 billion in April; in 2025/26 will be C$54.2 billion vs C$54.9 billion.

The finance minister resigned earlier:


There is much speculation about how long PM Trudeau can last.

This article was written by Eamonn Sheridan at www.forexlive.com.
 
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