Feds ran $1.1-billion surplus in Dec., up from $700-million deficit year earlier

OTTAWA – The federal budget was in the black in December as Ottawa recorded a $1.1-billion surplus.

That compares with a $700-million deficit recorded in December 2012.

In its monthly Fiscal Monitor, the Finance Department said revenues increased by $1.7 billion, or 7.9 per cent, in December, reflecting increases in most revenue streams.

Program expenses rose by $100 million, or 0.5 per cent, while public debt charges decreased by $200 million.

For the first nine months of the 2013-14 fiscal year, the government ran a deficit of $12.7 billion, compared with the $14.4 billion deficit recorded in the same April-December period of 2012.

Revenues were up $7.5 billion, or 4.1 per cent in the April-December period, while program expenses were up $6.2 billion, or 3.5 per cent.

Public debt charges were down $300 million.

The government had forecast a deficit of $16.6 billion for the 2013-14 fiscal year, and the December figure is close to that track.

The last budget predicted a deficit of $2.9 billion for 2014-15 and a surplus of $6.4 billion for 2015-16.

December revenues totalled $23.8 billion, with higher returns from personal and corporate income taxes, excise taxes and duties, EI premiums and other revenues.

December expenses totalled $20.5 billion, with higher payments to individuals and slightly smaller transfers to other levels of government.

For the first nine months of the fiscal year, revenues totalled $190.5 billion. Program expenses totalled $181.3 billion and public debt charges were $21.9 billion.