Ottawa runs $2.4B deficit for September
Shortfall blamed on a combination of lower revenue and higher program spending.
OTTAWA — The federal government ran a $2.4-billion deficit in September, double the $1.2-billion deficit set in the same month last year.
The Finance department says the bigger shortfall was due to a combination of lower revenue and higher program spending.
Revenues in the month totalled nearly $21.7 billion – down from nearly $22 billion in September 2015 – due to lower corporate income tax, non-resident income tax and excise taxes and duties.
Program spending grew to $22.2 billion, up from $21.2 billion a year ago, due to increases in major transfers to persons and other levels of government.
Public debt charges fell to $1.8 billion from $2 billion.
For the first half of the government’s fiscal year, it ran a deficit of $7.8 billion compared with a surplus of $1.6 billion in the same April-to-September period last year.
The government has forecast a $25.1-billion deficit for this fiscal year, which ends March 31.