The budgetary deficit hit $5B YTD in July, improving roughly $3B versus last year…

… on a 7% increase in revenue - led by higher personal taxes, penalties, and contribution from Crown corporations…

… which offset the 37% decline in import duties. With recent trade escalations, tariff revenue could pick back up…

… potentially softening any impact to unemployment, with EI claims currently up 6% versus last year.

That contributed to overall expense growth of 6% alongside other transfers to persons (old age, child benefits), direct program expenses (bad debt treatment)…

… and public debt charges, which increased 7% on the back of higher interest rates and record issuance…

… which should continue as long as the bid remains, with a $65B hole needing to be plugged this year to fund capital investment activity.

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