The federal Finance Department in Ottawa has posted a deficit of $2.9 billion for the first three months of its fiscal year that ran from April through June.
The latest deficit compares to a surplus of $3.6 billion recorded in the first three months of the previous fiscal year.
The deficit was attributed to increased program spending on the part of Canada’s federal government, which rose to $107.5 billion in the April-to-June period, up 15% from $93.8 billion in the same period a year ago.
The government’s finances have also been impacted by public debt charges, which totalled $13.9 billion, up from $10.7 billion a year ago, due to higher interest rates.
Revenue taken in by the federal government in Ottawa totaled $120.4 billion, up 9% from $110.6 billion a year earlier, largely reflecting more tax that was collected.
The fiscal year of Canada’s federal government runs from April 1 to March 31.
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