How much money does the federal government collect?
The Canadian government’s fiscal year runs from April 1 to March 31. In fiscal 2022-2023, the federal government’s revenue increased to $447.8 billion from $413.3 billion in 2021-2022. That represents approximately an 8% jump. Revenue has grown steadily over the past 20 years with the total revenues in 2022-2023 reaching more than double the amount in 2002-2003.
Where does the money come from? According to the Department of Finance, Canada’s federal revenues fall into main five buckets: income taxes (personal, corporate, and non-resident), other taxes and duties (Goods and Service tax, excise taxes, etc.), Employment Insurance (EI) premiums, proceeds from the pollution pricing framework, and other revenues. Personal income taxes are the largest source of federal revenues making up approximately 46.4 percent of total revenues in 2022-2023. Corporate income taxes are the second largest source of revenues contributing 21.0 percent of total revenues collected by the government in 2022-2023. The chart below breaks down the various government revenue streams.
Revenue from personal income tax has been the single largest source of government revenue since 1968-1969. while corporate income taxes became the second largest source of revenue for the first time in 2020-2021 when it surpassed the revenue generated from other taxes and duties. Here is a look at how the ratio of various revenue streams has changed between 1966 and 2023.
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