Canada records C$10.56 billion budget deficit over first ten months of 2019/2020

FILE PHOTO: The downtown skyline and CN Tower are seen past the eastern waterfront area envisioned by Alphabet Inc's Sidewalk Labs as a new technical hub in the Port Lands district of Toronto, Ontario, Canada April 3, 2019. REUTERS/Chris Helgren

OTTAWA - Canada recorded a C$10.56 billion ($7.49 billion) budget deficit for the first ten months of the 2019/2020 fiscal year as government expenditures grew faster than revenues, the finance ministry said on Friday.

Program expenses rose by 6.6% largely on increases in major transfers to persons, other levels of government and direct program expenses. Revenues grew by 2.9% on greater personal income tax revenues.

By comparison, Canada recorded a C$1.21 billion deficit in the period from April to January 2018/2019.

Canada posted a surplus of C$415 million in January, compared to a C$1.54 billion deficit in 2019. Program expenses decreased by 2.9% while revenues grew 4.2%.

The finance department noted there could be “substantial volatility in monthly results due to the timing of revenue receipts and expense recognition.”

Reporting by Kelsey Johnson, Reuters Ottawa bureau, 613 235 6745;