Monday, September 15, 2025

Latest

Canada’s Deficit Balloons To Record-Breaking $148.6 Billion In July With More Fiscal Spending Underway

Following Prime Minister’s Justin Trudeau’s promises of even more federal spending to alleviate the financial hardships posed by the coronavirus pandemic, it appears that debt burdens are going to be even higher than what many Canadians previously envisioned. The Finance Department recently released its monthly fiscal monitor results for the month of July, affirming an extensive deficit of $148.6 billion in the first four months of the 2020/2021 fiscal year.

According to the Finance Department, federal government spending on program expenses between the months of April and July totalled $215.7 billion, which amounts to a staggering increase of 106.2% from the same time, only a year prior. With respect to the major transfers to persons category, which this year is made up of employment insurance payments, children’s and senior’s benefits, as well as the Canada Emergency Response Benefit, spending reached nearly $87.3 billion – a 170.8% year-over-year increase.

Prior to the Finance Department’s July deficit calculations release, several major Canadian banks warned the federal government to take precautions before further hiking up the budget deficit for future debt burdens. Several of these banks including Bank of Nova Scotia, instead suggested that Prime Minister Justin Trudeau take a proactive approach towards programs that will lead to GDP growth, rather than focusing on more emergency spending.

Nonetheless, it appeared that the warnings fell on deaf ears, as the Prime Minister’s throne speech revolved around additional spending on emergency benefits In addition to extending the federal government’s emergency spending powers to the end of 2020. However, before the Prime Minister’s fiscal spending promises can be made reality, they first need to gain parliamentary approval.


Information for this briefing was found via the Finance Department. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

A Tale of Two Worlds: Stock Market Soars to Record Levels While US Economy Crumbles Under $3.3 Trillion Deficit

Since the onset of the coronavirus pandemic back in March, the US government has been...

Thursday, September 3, 2020, 10:37:00 AM

Canadian Federal Government Releases Fiscal Update Regarding Mounting Coronavirus Costs

As Canada begins the economic recovery phase from the coronavirus pandemic, the federal government has...

Thursday, July 9, 2020, 01:06:49 PM

Canadian Federal Government to Release Economic Update this Summer; Deficit Likely Exceeds $260 Billion

The coronavirus pandemic has caused the Canadian federal government to impose stay-at-home orders, strict social...

Wednesday, June 10, 2020, 06:21:00 PM

Federal Government Receives Warning From Canadian Banks On Out Of Control Deficit Spending

As the Canadian Liberal government eagerly anticipates to begin a second bout of stimulus spending...

Tuesday, September 15, 2020, 02:54:00 PM

CBO Forecasts Lower Budget Deficit in 2021 – But Calculations Exclude Biden’s Proposed $1.9 Trillion Stimulus

The latest economic outlook published by the Congressional Budget Office calculates that the US federal...

Saturday, February 13, 2021, 11:51:00 AM