Feds say deficit through October at $6.3 billion as monthly spending drops

OTTAWA – Federal government spending continues to lag behind last year’s pace, with spending in October one-fifth of what it was one year ago.

Between April and October of the 2016-17 fiscal year, the Liberals ran a deficit of $6.3 billion compared to a $9.3 billion deficit during the same stretch in 2015-16.

For October alone, the government ran a budgetary deficit of $300 million, lower than the $1.5 billion recorded during the same month last year.

The monthly fiscal monitor report says government revenue between April and October of this year was up $7.9 billion to $171.8 billion, a 4.8 per cent increase over the same period last year.

Personal and corporate tax revenues climbed by 5.4 per cent and 8.7 per cent, respectively. Non-resident income tax increased by 23.3 per cent. Excise taxes and duties were up $2.8 billion, or 9.2 per cent, and GST revenues rose by $2.5 billion, or 12.3 per cent.

Energy taxes increased by about $100 million, or 2.9 per cent.

Program spending increased $5.4 billion, or 3.4 per cent, to $164.2 billion.

Public debt charges fell $600 million to $13.9 billion due in large part to lower average effective interest rates.

The government’s fall economic update had projected a spending shortfall this fiscal year of $18.4 billion, down from the $25.5 billion outlined in the March budget.

For the next fiscal year starting in April 2018, the Liberals now predict a $15.6-billion deficit, compared with the $24.4-billion projection from the spring.