Rising program expenses propel fed 2016-17 deficit to $21.8B: preliminary estimate
OTTAWA — A $21.7-billion surge in federal program expenses was almost entirely responsible for the government’s expected 2016-17 deficit, according to a preliminary analysis of Ottawa’s books.
The Finance Department numbers released Friday suggest the government’s on track to run a $21.8-billion shortfall in the last fiscal year. The new figure puts the Liberal government close to its 2016-17 deficit projection of $23 billion, without counting a $3-billion risk adjustment that was added to the accounting framework.
The fiscal monitor Friday showed an 8.2 per cent expansion last year in federal program expenses, which included a $10.6-billion or 9.1 per cent increase in direct program spending.
Those expenses also feature an $8.3-billion or 10 per cent gain in government transfers to individuals, which include increases in federal benefit payments for children, seniors and employment insurance.