Federal books $8B lower over first four months compared with a year ago
OTTAWA — New numbers released Friday show the federal government ran a deficit of $2.8 billion over the first four months of 2016-17 — dropping Ottawa’s fiscal position $8 billion lower than it was over the same period a year ago.
By comparison, Ottawa had a $5.2-billion surplus during the same April-to-July stretch last year, according to the Finance Department’s monthly fiscal monitor.
This year in July alone, the report said the government books showed a deficit of $1.8 billion — down from a $200-million surplus a year earlier. The July data included a $1.4-billion increase in program expenses, an $800-million decline in revenues and a $200-million decrease in public-debt charges.
Between April and July, the numbers show federal revenues were $2.3 billion lower compared with last year, while program expenses were $6.5 billion higher. The government’s debt-servicing costs were $800 million lower over the time period, mostly because of the impacts of weaker inflation on bonds and a lower average interest rate.