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Canada posts C$1.1 billion budget surplus in June

FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch/File Photo

TORONTO (Reuters) - Canada reported a budget surplus for the third straight month in June as revenues climbed at a faster pace than program expenses, the Department of Finance said on Friday.

The federal budget surplus was C$1.1 billion ($843.69 million) for the month, which was higher than a surplus of C$16 million in June 2017.

Revenues climbed C2.2 billion, or 8.9 percent, helped by increases in income tax and employment insurance premium revenues.

Program expenses rose by C$0.9 billion, or 3.9 percent.

For the April to June period, the first three months of the 2018-19 fiscal year, the surplus climbed to C$4.3 billion from a surplus of C$0.1 billion in the same period of 2017-18.

Revenues climbed 8.6 percent, while expenses rose 2.3 percent.

Canada, which will provide an update of the economic and fiscal outlook in the fall, projected in February a C$18.1 billion deficit for the 2018-19 fiscal year.

($1 = 1.3038 Canadian dollars)

Reporting by Fergal Smith; Editing by Marguerita Choy

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