October 2, 2009 / 3:12 PM / 8 years ago

Canada July budget deficit hits C$5.8 billion

OTTAWA (Reuters) - Canada continued to bleed red ink in July as the result of the weak economy and fiscal measures taken to counter the recession, the Finance Department said on Friday.

<p>Condo buildings are seen under in construction in Toronto June 19, 2009. REUTERS/Chris Roussakis</p>

The monthly budget deficit was C$5.82 billion ($5.39 billion), compared with a surplus a year earlier of C$2.18 billion and June’s deficit of C$5.00 billion.

For the first four months of the fiscal year, April-July, the cumulative deficit was C$18.34 billion -- largely on pace for the C$55.9 billion deficit projected for the whole year. In April through July 2008, the budget had a C$2.94 billion surplus.

The department said roughly C$9 billion of the C$18.34 billion was attributable to government measures to fight the recession, including tax cuts, enhanced jobless benefits and a bailout of the auto industry.

Revenues were down 15.4 percent in July from a year earlier to C$18.44 billion while program expenses jumped 30.3 percent to C$21.80 billion.

Canada had run budget surpluses for more than a decade but went into deficit late last fiscal year.

($1=$1.08 Canadian)

Reporting by Randall Palmer; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below