OTTAWA (Reuters) - Higher tax revenues helped Canada cut its budget deficit in the first four months of the fiscal year to C$7.10 billion ($6.83 billion) from C$7.70 billion a year earlier, the Finance Department said on Friday.
The Conservative government, which has pledged to balance the books by 2014-15, forecasts that the 2011-12 budget deficit will be C$32.3 billion.
Revenues from April to July increased by 3.2 percent to C$78.02 billion, primarily reflecting increased corporate and personal income taxes. Spending was up 1.4 percent at C$74.07 billion, while public debt charges rose 8.0 percent to C$11.04 billion.
In July, the budget deficit was C$1.60 billion compared with a shortfall of C$470 million in July 2010.
Reporting by David Ljunggren; writing by Jeffrey Hodgson; editing by Peter Galloway