Canada's Department of Finance today released its Fiscal Monitor for August. The month saw a deficit of C$ 2.5 billion, markedly lower than the C$ 9.8 billion shortfall recorded in the same month last year. For the first five months of the current fiscal year (i.e. April-August), the budget shows a surplus of C$ 3.9 billion, compared to a deficit of C$ 57 billion (!) last year. Although it is highly unlikely that there will be a surplus for the full financial year, it need hardly be said that these results are massively better than the Government was projecting, as revenues rise and COVID-related spending falls off the books.
The Department of Finance also announced today that Finance Minister Chrystia Freeland will table the usual Fall Financial Update (aka mini-budget) on November 3. It is likely that the Government will take advantage of the improved fiscal position to announce at least a few targeted spending measures, but there are unlikely to be any significant giveaways. Of course, none of this is likely to deter Tory leader Pierre Poilievre from blaming high inflation on "Justin Trudeau's deficits", but maybe the media will take notice. We live in hope.
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