Canada Prime Minister Justin Trudeau makes his way to his seat at the start of the First Ministers Meeting in Ottawa, Tuesday, Oct. 3, 2017. (Adrian Wyld/The Canadian Press via AP)

Liberal government runs $1.4B budgetary deficit in first two months of 2019-20

The report says the government ran a $2.1-billion deficit in April and a $700-million surplus in May

A new preliminary estimate says the federal government posted a budgetary deficit of $1.4 billion through the first two months of the current fiscal year.

The Finance Department’s numbers show the combined shortfall for April and May 2019 came after government spending and public debt charges expanded at a pace about three times higher than revenues.

The report says expenses during those two months jumped up 13.5 per cent — or $6.3 billion — compared to a year earlier, mostly due to increases in direct program spending and transfers to other levels of government.

The department’s latest fiscal monitor says over that period public debt charges rose 13.3 per cent, or $600 million.

Government revenues only provided a partial offset, compared to a year earlier, by increasing 4.2 per cent — or $2.3 billion — mostly because of higher tax revenues.

READ MORE: Five highlights in the 2019 federal budget

The report says the government ran a $2.1-billion deficit in April and a $700-million surplus in May.

The combined deficit compares to a $3.2-billion surplus over the same period in 2018.

The Liberal government’s spring budget forecasted a shortfall of $19.8 billion for the 2019-20 fiscal year.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

5,000 ducks race at Surrey beach

‘Ducktona’ event raises funds for Royal Canadian Marine Search and Rescue Station 5

New survey aims to create a ‘vibrant downtown that all of Surrey can be proud of’

Downtown Surrey BIA’s 20/20 Vision project asks residents for input

Developer looks to build 25-storey office tower by Surrey mall

Proposed for site of former Best Buy store

Seventh lane now open on Alex Fraser Bridge

Four lanes heading southbound, three heading northbound for now

VIDEO: Vancouver Island mayor details emergency response after fatal bus crash

Sharie Minions says she is ‘appalled’ by condition of road where bus crashed

Vancouver’s Tristan Connelly shocks the UFC world

Late replacement upsets big favourite Pereira, main event sees Gaethje stop Cerrone in round one

UVic president offers condolences after two students killed in bus crash

‘We also grieve with those closest to these members of our campus community,’ Cassels says

Coming Home: B.C. fire chief and disaster dog return from hurricane-ravaged Bahamas

The pair spent roughly one week on Great Abaco Island assisting in relief efforts

Newcomer Ferland lines up with sniper Pettersson as Vancouver Canucks camp opens

Ferland provides more depth and a scoring threat up front, Pettersson says

Intelligence official charged seemed to be ‘exemplar of discretion’: UBC professor

Professor Paul Evans says he served on Cameron Ortis’s doctoral dissertation committee

B.C. company gets licence to test psychedelic drugs for therapy treatment

Salvation Botanicals interested in manufacturing, testing and research and development

B.C. police watchdog to investigate man’s head injury during RCMP arrest

Suspect fled on a bicycle and fell off when an officer attempted to stop him

‘A real shame’: B.C. MLA says factors behind Tolko mill closing should have been caught

Kelowna-Mission MLA Steve Thomson said the industry is in bad shape across the province

Most Read