World News

Canada November budget deficit edges up to C$2.70 billion

OTTAWA, Jan 31 (Reuters) – Canada posted a budget deficit of C$2.70 billion ($2.05 billion) in November, up slightly from a C$2.22 billion shortfall seen in the same month a year earlier, the federal finance ministry said on Friday.

Revenues increased by 3.1% in November on higher income tax revenues. Program expenses jumped 5.2% because of increases in major transfers to people and other levels of government.

For the first eight months of the 2019-2020 fiscal year, Canada posted a deficit of C$11.75 billion, compared to a deficit of C$2.13 in the same period of 2018-2019.

Revenues between April and November grew by 2.7% on an increase in personal tax revenues, while program expenses were up 7.5% because of a combination of higher major transfers to persons, other levels of government and direct program expenses.

The financial results presented in the Fiscal Monitor have not been audited or reviewed by an external auditor, the department said, noting there can be “substantial volatility in the monthly results.”

(Reporting by Kelsey Johnson in Ottawa, Reuters Ottawa bureau, 1-613 235 6745; kelsey.johnson@tr.com)

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