Consolidated Canadian Government Finance Statistics, 2022

Canadian general government deficit contracts due to increase in revenue

The consolidated Canadian general government (CGG) deficit, which includes federal, provincial, territorial and local governments, decreased from $63.7 billion in 2021 to $6.9 billion in 2022, down by $56.8 billion. This contraction is explained by an increase in revenues (+$58.2 billion or +5.9%), which offset a small increase in expenses (+$1.4 billion or +0.1%). The federal government recorded a deficit of $17.4 billion in 2022, down by $44.7 billion, while the consolidated provincial, territorial and local governments (PTLGs) recorded a surplus of $10.4 billion.

As a percentage of nominal gross domestic product (GDP), the CGG deficit fell to 0.2% in 2022 from 2.5% in 2021. Federal government deficit-to-GDP declined from 2.5% in 2021 to 0.6% in 2022, while PTLG recorded a surplus of 0.4% of GDP, the first surplus since 2008.

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