OTTAWA — A new report shows the federal government ran a deficit of $5.2 billion over the first five months of its current fiscal year following a $10.9-billion jump in program expenses compared with a year earlier.
The preliminary numbers from the Finance Department says the higher program spending represents a year-over-year increase of 9.1 per cent.
In comparison, the federal fiscal monitor says the government posted a $2.6-billion surplus during the same April-to-August period last year.
The higher spending was largely due to a $6.2-billion — or 12.3 per cent — increase in direct program expenses as well as, to a lesser degree, larger transfers to individuals and other levels of government.
Year-over-year, public debt charges increased by $700 million — or 7.2 per cent.
Government revenues were up $3.9 billion — or 2.9 per cent — from the same period last year, an increase mostly due to higher personal income tax revenues and includes $18 million for the federal portion of cannabis taxes.
The Liberal government forecasted a deficit in last spring’s budget of $19.8 billion for the 2019-20 fiscal year.
This report by The Canadian Press was first published Oct. 25, 2019.
The Canadian Press
Most of this money is spent on programs that many need and enjoyed by us all!
That’s how you buy votes
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