According to a new economic release, Canada has posted a record $1.29 billion or around C$1.72 billion budget surplus for the first two quarters of the year 2022. The main reason behind this budget surplus is the higher revenue collected from taxation.
If we look at the time period between April - September (2021), Canada actually posted a budget deficit of C$68.57 billion.
Overall, the revenue increased by 18.6% due to the improved income streams. Similarly, the program expenses in Canada decreased by 17.9%. This tells us that the support fund during COVID-19 has would down. As a result, transfers to businesses and individuals have also slowed down.
It seems that the financial result for 2022-23 continues to improve and will be a breath of fresh air for the Canadian government. Just last year, the country was facing a full-blown COVID-19 pandemic which affected everything from finances to the general life of the citizens.
If we look at the monthly results, Canada has recorded a $2.16 billion (Canadian Dollars) budget deficit. However, this number was $11.41 billion (Canadian Dollars) just a year ago. Once again, Canada has improved a lot in terms of the budget deficit, even on a monthly basis.
At the time of writing this, 1 USD is equal to 1.3382 Canadian Dollars, which is mainly due to the broad USD strength. But in terms of economy and financial health, it seems that Canada is doing much better than the USA and the majority of the European countries.
Part of it could be attributed to the slowdown in spending, which was at its peak during COVID-19. At the height of the pandemic, the Canadian government introduced various means to support its citizens and Canadian businesses! These measures helped businesses and citizens to stay afloat during the tough economic conditions. However, it also led to a budget deficit as the country was spending a lot of money.