Canada’s budget deficit for fiscal year 2022-23 narrowed to CAD 41.31 billion.

© Reuters. View of downtown Edmonton, Alberta, Canada on October 6, 2021. REUTERS/Todd Korol

OTTAWA, May 26 (Reuters) – Canada’s budget deficit for fiscal year 2022/23 narrowed to C$41.31 billion ($30.89 billion) from C$95.57 billion the previous year as the economic recovery from the pandemic spurred tax revenues, and spending on support measures declined. This was announced on Friday by the Ministry of Finance.

Revenue rose 8.6% between April 2022 and March 2023, “reflecting a broad-based improvement in revenue streams due to economic growth and the weakening financial and economic impact of COVID-19,” the Treasury Department said in a statement.

Program spending decreased by 6.5%, mainly due to a reduction in transfers to individuals and businesses due to the expiration of temporary COVID measures.

On a monthly basis, Canada reported a deficit of C$44.31 billion in March, compared to C$25.75 billion recorded in March 2022.

($1 = CAD 1.3372)