Ottawa posts $1.1B surplus for June compared with $1.6B last year - Macleans.ca

Ottawa posts $1.1B surplus for June compared with $1.6B last year

$1.1 billion June surplus comes as the federal government’s revenue increased by $600 million to $24.3 billion for the month

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OTTAWA – The federal government posted a surplus of nearly $1.1 billion for June — half a billion less than in the same month last year when the surplus was $1.6 billion.

The surplus came as the federal government’s revenue increased by $600 million to $24.3 billion for the month.

Excise taxes and duties were the source of most of the revenue growth.

Federal program spending increased by $1.6 billion from a year ago to $21.3 billion in June.

The universal child care benefit was responsible for most of the spending increase, which was partly offset by a $500-million decline in public debt charges, which fell to $1.9 billion.

For the April to June period, the government recorded a surplus of $5 billion compared with a surplus of $400 million in the same three-month period a year earlier.

The Finance Department said the results for the first three months of the fiscal year provide limited information with respect to the outlook for the year as a whole.

“That being said, the financial results through the April to June 2015 period are consistent with the fiscal projection for 2015–16 presented in the budget,” the department said in a statement Friday.

The government forecast in April a surplus of $1.4 billion for its 2015-16 fiscal year, however the parliamentary budget office suggested in July that Ottawa was on track to run a deficit based on a downgraded economic projection by the Bank of Canada.

The budget office projected the government producing a $1-billion shortfall in 2015-16.

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