Trudeau Liberals run $1.4 billion deficit in first two months of 2019-20
According to a report from The Canadian Press, preliminary estimates put the Liberals’ budgetary spending at a $1.4 billion-dollar deficit for the first two months of the 2019-2020 fiscal year.
For comparison, the same time last year, April and May saw a $3.2-billion surplus. This signifies a major shift in government spending habits and prioritization.
What happened? Debt and government overestimates of funds happened.
According to the report, “The Finance Department’s numbers show the combined shortfall for April and May 2019 came after government spending and public debt charges expanded at a pace about three times higher than revenues.
“The report says expenses during those two months jumped up 13.5 per cent—or $6.3 billion—compared to a year earlier, mostly due to increases in direct program spending and transfers to other levels of government.”
This deficit is despite sharp tax increases to try to balance out spending. Overall, the report found, after analyzing the Liberals’ spring budget, that the federal government is estimated to run a deficit of $19.8-billion-dollars for the 2019-2020 fiscal year