Feds post deficit of $8.4B through first 10 months of ’17-18: estimate

OTTAWA — A preliminary analysis of the federal books says the government ran a budgetary deficit of $8.4 billion through the first 10 months of the fiscal year, compared with a shortfall of $12.8 billion for the same period last year.

The Finance Department’s latest monthly fiscal monitor shows overall revenues were up $11.6 billion, or 4.9 per cent, compared with the same period last year, thanks to an increase in tax revenues that was only partially offset by a decline in incoming employment insurance premiums.

The government’s recent budget predicted a shortfall in 2017-18 of $19.4 billion, which is $1 billion more than the deficit projection in its fall fiscal update.

The fiscal monitor says program spending rose $7.4 billion, or 3.2 per cent, compared with the same 10-month stretch last year, due to increases in major transfers to individuals, other levels of government and direct program expenses.

The report says direct program expenses were up $2.8 billion, or 2.8 per cent, largely because of operational and personnel costs at National Defence.

Public debt charges fell $200 million, or 0.9 per cent, mostly due to a lower average effective interest rate on debt.