Canada’s finance ministry reported that its budgetary balance shifted to a CAD 2.88 billion (USD 2.14 billion) deficit in the first quarter of the fiscal year 2024 yesterday, 30 August 2024. This change was mainly driven by an increase in programme expenses that outpaced government revenues.
In 2023, the government reported a CAD 3.62 billion surplus.
Programme expenses increased to14.6% due to increased transfer payments, and public debt charges rose by 29.7% because of higher interest rates on treasury bills and bonds.
Year-to-date revenues increased by 8.9%, driven by higher tax revenues. In June, Canada recorded a surplus of CAD 939 million this year, compared to CAD 2.11 billion in June 2023.
Earlier, Canada’s Department of Finance, in a release, announced a public consultation on a legislation that includes new measures for Budget 2024 on 12 August, 2024.
This follows the enactment of several budget measures in June 2024 under the Fall Economic Statement Implementation Act, 2023 (Bill C-59) and the Budget Implementation Act, 2024, No. 1 (Bill C-69). The measures include the Global Minimum Tax Act, which introduced the Income Inclusion Rule (IIR) and the Qualified Domestic Minimum Top-up Tax (QDMTT), effective for fiscal years starting on or after 31 December, 2023.
