OTTAWA, July 25 The Canadian government ran a
budget deficit of C$1.15 billion ($1.06 billion) in the first
two months of the 2014/15 fiscal year, down from C$2.71 billion
a year earlier, the finance department said on Friday.
The government forecasts a C$5.5 billion deficit for the
current fiscal year, started April 1, and has promised a C$3.7
billion surplus for the following year, just as Canada goes into
a federal election scheduled for October 2015.
The budget deficit in April was C$1.41 billion, up from a
shortfall of $283 million in April 2013. In May, there was a
budget surplus of C$267 million, compared with a deficit of
C$2.43 billion in 2013.
For the two months combined revenues increased by C$1.61
billion, or 3.8 percent, on higher income tax revenues, excise
taxes and duties. Program expenses edged up by C$216 million, or
0.6 percent, on increases in funds transferred to individuals
and other levels of government.
(Reporting by David Ljunggren; Editing by Peter Galloway)