The federal government in Ottawa’s budgetary surplus for the first two months of its current fiscal year totaled $1.5 billion, down 72% from $5.3 billion in the same period a year earlier.
In the latest “Fiscal Monitor,” the federal Finance Department said revenues during April and May, the first two months of the current 2023-24 fiscal year, increased by $1.3 billion, or 1.8%, due to higher interest and more proceeds from personal income tax.
However, expenses in the period increased $3.9 billion, or 6.6%, as the government paid out more returns under the pollution pricing framework, as well as higher social assistance benefits to elderly people and more transfers to other levels of government.
The Finance Department said higher interest rates have led to a $1.3 billion increase in public debt charges from a year ago, while net actuarial losses fell by $100 million in April and May.