OTTAWA (Reuters) - Canada ran a C$158 million surplus ($150 million) budget surplus in June, compared with a C$993 million deficit a year earlier, and the government said on Friday its deficit reduction plan appeared to be on track.
“The financial results for the April to June 2013 period and recent economic developments suggest that the fiscal projection presented in Economic Action Plan 2013 is on track,” the Department of Finance said.
That was a reference to the government’s March 21 budget, which projected the deficit declining to C$18.7 billion in 2013-14 from C$25.9 billion in 2012-13; and falling further to C$6.6 billion in 2014-15 before turning into a small surplus the year after.
The deficit in the April-June period, representing the first three months of the fiscal year, declined to C$2.55 billion from C$2.81 billion a year earlier.
June’s surplus, the first since February, reflected in part the monthly timing of revenue receipts, which raised the deficit in May but then helped push June into the black, the department said.
Revenue increased 10.1 percent in June from a year earlier to C$22.72 billion while program expenses were 6.3 percent higher at C$20.26 billion. Public debt charges fell by 10.3 percent to C$2.30 billon.
Reporting by Randall Palmer; Editing by Peter Galloway and Steve Orlofsky