Canada's budget deficit widened in October, reaching C$6.96 billion, with declining corporate-tax revenue and rising expenses related to benefits and public debt charges. The government aims to keep the deficit below C$40 billion, or 1.4% of Canada's GDP. The budget update highlighted a decline in tax revenue, with corporate-tax receipts falling by 24.2%, offset by gains in personal-income tax and sales tax categories. Spending on government programs increased by 8.6%, while jobless benefits rose by 12.6% to C$1.67 billion. Public-debt charges surged by 73.6% to C$4.18 billion, attributed to higher interest rates.

Canada's Budget Deficit Widens