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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19 pandemic estimated to lead to $2-million loss for RDN Transit

Regional District of Nanaimo has been seeing gradual rider increase since mid-May

Beefs & Bouquets, July 15

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

Shop window art show explores COVID-19, the Black Death and the Renaissance

Rotating ‘Renewal’ exhibition coming to Arbutus Books display window in August

Speed limit on Nanaimo’s Georgia Avenue will be lowered to 30km/h

Lower speed limit, traffic calming part of a package of roadway reallocation measures

Overdose advisory issued in Nanaimo

Island Health warns of increase in overdoses from opioids and stimulants

21 new COVID-19 cases confirmed in B.C. as virus ‘silently circulates’ in broader community

Health officials urge British Columbians to enjoy summer safely as surge continues

Tough time for tree fruits as some B.C. farm products soar

Province reports record 2019 sales, largely due to cannabis

‘Let’s all do a self-check’: Okanagan mayor reacts to racist vandalism targeting local family

Home of Indo-Canadian family in Summerland was targeted on evening of July 13

Province agrees to multimillion-dollar payout for alleged victims of Kelowna social worker

Robert Riley Saunders is accused of misappropriating funds of children — often Indigenous — in his care

Feds fund safe drug supply pilot program for Cowichan

The opioid overdose crisis continues to be one of the most serious public health crises

B.C. businessman David Sidoo gets 3 months behind bars for college admissions scam

Sidoo was sentenced for hiring someone take the SATs in place of his two sons

PHOTOS: Inside a newly-listed $22M mega-mansion on ALR land in B.C.

The large home, located on ALR land, is one of the last new mansions to legally be built on ALR land

Thousands of dollars in stolen rice found in B.C. warehouse

Police raid seizes $75,000 in ‘commercial scale’ theft case

City building cycle lane on Departure Bay Road, walking lane on Boxwood

Nanaimo council approves three active transportation projects totalling $170,000

Most Read