The Canadian economy recorded a deficit of $12.7 billion in June, compared to a deficit of $33.6 billion in June 2020.
The Treasury explained that the decrease in the deficit came with lower spending compared to last year when Ottawa spent billions on emergency aid due to the pandemic and improved revenues.
“As expected, the government’s fiscal results from 2021-2022 show a marked improvement compared to the peak of the COVID-19 crisis,” the Ministry of Finance said. “However, it still reflects difficult economic conditions.”
Total program spending, excluding net actuarial losses, was $39.1 billion in June, down from $51.3 billion a year earlier.
Revenue increased to $29.6 billion in the month, compared to $19.9 billion in June of last year. Public debt fees increased to $1.9 billion from about $1.3 billion.
The federal deficit for the April-June 2021-22 fiscal year totalled $36.5 billion, compared to a deficit of $120.4 billion for the same period a year earlier.