Canada budget in surplus for first quarter of fiscal year

OTTAWA Fri Aug 29, 2014 11:00am EDT

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OTTAWA Aug 29 (Reuters) - Canada registered a C$1.57 billion ($1.45 billion) budget surplus in June, which moved the first three months of the fiscal year into surplus as well, with revenues up and program expenses down, the Finance Department said on Friday.

June's surplus compares with a C$157 million surplus in June 2013. April to June is now in the black by C$424 million, compared with a C$2.55 billion deficit for the same period in 2013.

The government also said the economic developments and financial results so far suggested that the fiscal projection for 2014-15 that was presented in the February budget is "on track."

That budget predicted the deficit would be cut to C$2.9 billion for the current fiscal year from C$16.6 billion for the year that ended on March 31. That C$2.9 billion figure includes a C$3.0 billion allowance for risk, meaning an underlying projected surplus of C$100 million.

($1=$1.08 Canadian) (Reporting by Randall Palmer; Editing by Chizu Nomiyama)

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