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

In photos: Residents learn to paint the scenes of Salmon Arm

The free workshop was held at Piccadilly Mall

Year-round training envisioned for Salmon Arm’s Rapattack base

Mayor hopes council’s support of Rapattack will pay off in longevity for base

Letter: Better fix needed than what’s proposed for Balmoral Road/Highway 1 intersection

Province already behind on widening of Trans-Canada Highway

Salmon Arm approved for worker based in Vernon to support homeless

While application to Ministry of Social Development gets nod, one to BC Housing denied

Column: Potentially valuable WorkSafeBC review let down by bias

Notes from the Legislature by Shuswap MLA Greg Kyllo

VIDEO: B.C. woman meets biological mother, 38 years later

Mother never gave up hope of finding daughter, despite all the obstacles

B.C. Lions fall to 1-9 after 13-10 loss to Ticats

Lowly Leos have dropped six straight CFL contests

Man shot near Coalmont airlifted to hospital

A man was shot near Coalmont B.C. Saturday afternoon. The victim was… Continue reading

VIDEO: B.C. woman meets biological mother, 38 years later

Mother never gave up hope of finding daughter, despite all the obstacles

B.C. man who died after rescuing swimmer was known for helping others

Shaun Nugent described as a dad, a coach, a hero and ‘stand-up guy’ at celebration of life

In photos: Salmon Arm’s downtown farmers market

Out of the many sights and sounds from Salmon Arm’s downtown farmers… Continue reading

B.C. RCMP plane chases fleeing helicopter as part of major cross-border drug bust

The helicopter eventually landed at a rural property near Chilliwack

Renter of torched Okanagan home a British Army veteran, new Canadian

Owen Wilson was just beginning to settle into life in Canada when the blaze occurred

Thousands cycle to conquer cancer

The 11th annual Ride to Conquer Cancer took place Saturday morning, Aug. 24 in Surrey, B.C.

Most Read