Canada 11-month budget deficit C$11.8 bln

Fri Apr 26, 2013 10:59am EDT
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* February surplus C$1.56 bln

* Eleven-month deficit C$11.81 bln vs yr-ago C$12.63 bln

OTTAWA, April 26 (Reuters) - Canada ran a budget surplus in February but a cumulative deficit of C$11.81 billion ($12.05 billion) in the first 11 months of the 2012-13 fiscal year, which was less than half the size of the shortfall expected for the full year, according to a Department of Finance report on Friday.

The monthly surplus totaled C$1.56 billion compared with a surplus of C$1.49 billion in February of last year due to higher personal income tax revenues and lower debt charges, which offset an increase in program expenses.

The budget shortfall from the start of the fiscal year in April 2012 until the end of February 2013 was slightly smaller than the C$12.63 billion deficit in that same period a year earlier.

Growth in expenses outpaced that of revenue, jumping by C$6.1 billion, or 2.9 percent, compared with a C$5.1 billion, or 2.3 percent increase for revenues.

Public debt charges fell by C$1.7 billion, or 6.1 percent, due to a lower effective interest rate.

The 11-month figures are well below the government's prediction for a C$25.9 billion deficit in the entire 2012-13 year. However, final results can vary significantly due to various end-of-year adjustments that may not be known for several months.