OTTAWA – The federal government ran a deficit of $2.7 billion in August compared with a deficit of $2.3 billion in the same month last year.
According to the Finance Department’s latest fiscal monitor, revenue increased by $700 million or 3.2 per cent to nearly $22.9 billion, due to increases in corporate income tax revenue, excise taxes and duties and other revenues.
Meanwhile, program spending increased by $1.4 billion or 6.1 per cent to nearly $23.4 billion due to increases in major transfers to persons and other levels of government and direct program expenses.
Public debt charges fell $300 million or 11.7 per cent to nearly $2.2 billion, due to lower costs associated with bond buyback operations and a lower average effective interest rate.
For the first four months of the fiscal year to August, the government ran a deficit of $5.4 billion compared with a surplus of $2.8 billion in the April-to-August period last year.
Revenue for the four-month period fell $1.6 billion, or 1.3 per cent, to $117.8 billion, while program spending grew to $112.5 billion, up $7.8 billion, or 7.5 per cent, from a year ago. Public debt charges fell $1.1 billion to $10.7 billion.