Feds start fiscal year with $68M surplus, but red ink is on the way

The Canadian Press</span>
Published Friday, July 28, 2017 11:22AM EDT
Last Updated Friday, July 28, 2017 11:24AM EDT

OTTAWA - The federal government started the fiscal year with the tiniest of budgetary surpluses, though the black ink is expected to turn very red in the coming months.

The Finance Department's monthly fiscal monitor reports that the government posted a $68-million surplus for April and May, just less than last year's total over the same period.

The surplus is not expected to last, however, as the Liberals have promised to run deep deficits over the coming years to finance major infrastructure work and more lucrative child benefits.

The feds ended up running a $21.85-billion deficit last year, and have projected a $25.1-billion deficit this year.

Program expenses increased by more than $2.6 billion in April and May compared to the same period last year, due to more money spent on seniors' benefits and the new Canada Child Benefit.

While that outstripped the nearly $2.3-billion growth in revenues, including a major boost in GST revenues, the fiscal situation was helped by a $312-million reduction in public debt charges.

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