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The PDF below is an analysis of Stephanie Kelton's new book the Deficit Myth.
Mark Twain - It ain’t what you know that gets you into trouble. It’s what you know for sure that just ain’t so.
spending by the federal Government is financed in advance
All spending undertaken by the Federal Government is financed in advance
Statement by Nathalie Gauthier, Manager of Consultations and Communications Branch of the Department of Finance Canada,
dated October 9, 2020:
To make up the shortfall between the revenue and spending, the Government of Canada issues bonds and treasury bills to raise the necessary funds. The Bank of Canada, as the Government of Canada’s fiscal agent, conducts auctions on behalf of the Government where these securities are sold.
The funds raised through the sale of the Government of Canada securities flow into the Receiver General account. From there, these funds are used to finance program payments or extinguish obligations due.
All spending undertaken by the Government is financed in advance.