FX.co ★ Canada Government Budget Gap Widens in January

Canada's government budget revealed a deficit of CAD 5.13 billion in January 2025, a significant increase from the CAD 2.06 billion deficit observed in the same month of the previous year. Over the initial ten months of the 2024/25 fiscal year, running from April to January, the nation encountered a burgeoning deficit tallying CAD 26.85 billion, compared to a CAD 25.67 billion deficit during the equivalent period the year prior. This increase in the deficit was attributed to a 10.9% rise in program expenses, reflecting escalations across several categories. Additionally, public debt charges surged by 16.2%, largely due to an expansion in the volume of marketable bonds. Contrastingly, government revenues grew by 10.9%, propelled mainly by an uptick in personal income tax receipts alongside other taxes and duties.