OTTAWA, Aug 30 (Reuters) – Canada’s budgetary balance swung to a deficit of C$2.88 billion ($2.14 billion) in the first three months of the fiscal year as program expenses lifted government spending higher than revenues, the finance ministry said on Friday.
By comparison, the government had posted a surplus of C$3.62 billion in the same period a year ago, it said in a statement.
Program expenses in the first three months rose 14.6% on higher transfer payments. Public debt charges jumped by 29.7% largely because of higher interest rates on marketable bonds and treasury bills, the ministry said.
Year-to-date revenues grew by 8.9%, largely reflecting higher personal income tax revenue and revenue from other taxes and duties.
On a monthly basis, Canada posted a surplus of C$939 million in June, down from C$2.11 billion in June 2023.
($1 = 1.3485 Canadian dollars)
(Reporting by Promit Mukherjee, editing by David Ljunggren)