According to the latest reports, OTTAWA- the federal government has reportedly run a deficit of $120.4 billion during the first three months of its 2020-2021 fiscal year as the treasury pumped out aid to subtle the impact of the corona virus pandemic.
The result when compared to the same period in the 2019-2020 fiscal year, comes with a deficit of $85 million.
In its monthly fiscal monitor, the Finance Department says that the program expenses for the three month period of April to June had hit almost $167.9 billion which is an increase of about $90.3 billion from the same period a year earlier.
Much of the bump in spending came in as a result of emergency aid programs, the Liberals rolled out as business shuttered and the workers were laid off, furloughed, or had their hours slashed.
The major transfers to persons which consists of this year of seniors benefits, employment insurance payments, the Canada Emergency Response Benefit, and other children benefits has increased by 193.5 percent year-over-year and has hit almost $70.6 billion.
Also, the factor that has been adding cost is the government’s wage subsidy program which the fiscal monitor says cost almost $22.8 billion for the first quarter of the fiscal year.
As compared with the same period last year, the revenues for the period totaled $52.4 billion which is down by $32 billion or 37.9 percent. This is primarily as a result of the government deferring tax filing deadlines and collection.
The decrease in the public debt charges by about $2 billion or 29.8 percent to $4.9 billion from $6.9 billion has been largely reflecting on the lower consumer price index adjustments on the real return bonds.
It was only last month when the Liberals had projected a historic deficit of $343.2 billion for this fiscal year. And, the Finance Department says that the figures through the month of June remain consistent with that estimate.