December 22, 2014 / 4:08 PM / 3 years ago

Canada budget deficit rises in October on tax cuts

Buildings are seen in the financial district in Toronto, January 28, 2013. REUTERS/Mark Blinch

OTTAWA, (Reuters) - Canada’s budget deficit rose to C$3.21 billion ($2.75 billion) in October from C$2.48 billion a year ago because of tax benefits announced by the Conservative government, the finance department said on Monday.

Absent this adjustment, the deficit would have been C$1.6 billion, it said. The government announced on Oct. 30 it would allow parents with children 18 and under to split a portion of their income to take advantage of lower tax brackets.[ID:nL1N0SP1JX] It also doubled a tax credit for children’s fitness.

For the fiscal year to date, April through October, the deficit fell to C$3.95 billion from C$12.83 billion in the same period in 2013.

Prime Minister Stephen Harper has promised to deliver a budget surplus in the fiscal year that starts next April, and has said that would be possible despite the fall in oil prices.

($1=$1.16 Canadian)

Reporting by Randall Palmer and Leah Schnurr

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