A new analysis of government finances across the country says revenues were much stronger than expected in the last year due to higher inflation and economic growth.
The analysis by Desjardins found spending was more mixed, but pandemic-related expenditures were generally lower than anticipated.
As a result, the financial services company says, federal and provincial governments all saw an improvement in their 2021-22 deficit estimates and starting points for the rest of their fiscal forecast.
However, Desjardins found that what governments did with this fiscal windfall varied greatly.
Some chose to set a portion of it aside for a rainy day, while others spent it all.
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