The federal government posted a budgetary deficit of $1.2 billion during the first four months of its fiscal year, compared with a surplus of $6.3 billion during the same period a year earlier.
The Finance Department released its monthly fiscal update Friday, offering insight into the federal government’s finances for the 2023-24 fiscal year.
The report shows government revenues were up $2.8 billion, or 2%, which the department says largely reflects higher interest revenues and other non-tax revenues.
However, program expenses excluding net actuarial losses were up $7.2 billion, or 5.9%, as expenses rose across the board.
Higher interest rates have also pushed up public debt charges by $3.3 billion, an increase of 29.9% from the previous year.
Meanwhile, net actuarial losses decreased by $200 million or 4.7%.