Feds post $4.3 billion deficit as high interest rates grow public debt charges

The federal government posted a budgetary deficit of $4.3 billion from April to August.

In its monthly fiscal monitor, the Finance Department says this compares to a surplus of $3.9 billion during the same period of the 2022-23 fiscal year.

Government revenues increased $2.4 billion, or 1.4 per cent, largely due to higher interest revenues and other non-tax revenues.

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Program expenses excluding net actuarial losses increased $7.4 billion, or 4.8 per cent.

Public debt charges grew by $4.1 billion, or 27.7 per cent, largely due to higher interest rates.

Net actuarial losses decreased by $0.9 billion, or 22.7 per cent, compared to the same period last year.