November budget surplus falls to C$85 mln

Fri Jan 25, 2008 1:26pm EST
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OTTAWA (Reuters) - Canada posted a budget surplus in November 2007 of C$85 million ($85 million), down from C$462 million in the same month a year earlier, as growth in spending outpaced that of revenues, the government said on Friday.

The April-November surplus totaled C$6.7 billion, down from C$6.91 billion in the same period a year earlier.

Revenues in November rose 3.9 percent, or C$700 million, year-over-year. But personal and corporate income tax gains were offset by a 43 percent drop in nonresident withholding taxes due to a big one-time payment by a foreign investor selling Canadian assets in November 2006, the finance department said.

Program expenses rose 6.5 percent, or C$1 billion, in November compared with a year earlier.

The government expects to post its 11th consecutive surplus in the full 2007-08 fiscal year ending in March 2008, estimated at C$11.6 billion. It has also said it will pay down C$10 billion in debt.

($1=$1.00 Canadian)

(Reporting by Louise Egan; Editing by Peter Galloway)