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.
Reporting by Randall Palmer and Leah Schnurr