The federal government recorded a deficit of $3.9 billion in the month of September, the Department of Finance announced on Friday.

In the latest Fiscal Monitor, the government said revenues increased by $2 billion, or 13.1%, to $17.3 billion, with both personal and corporate tax revenues climbing.

Program expenses in September 2010 were $18.6 billion, up 3.1% from September 2009, reflecting higher transfer payments and higher operating expenses among crown corporations, departments and agencies.

For the first six months of the 2010–11 fiscal year, there was a budgetary deficit of $17.4 billion, compared to a deficit of $28.6 billion during the same period of 2009–10. Roughly $9 billion of the $17.4-billion deficit was attributable to stimulus actions taken under Canada’s Economic Action Plan.

The numbers represent an improvement from last year at this time, when the government reported a $28.6-billion deficit for the first six months of fiscal 2009-10.

In its fall economic update, the government estimated that its 2010-11 deficit would be $45.4 billion.

“With half of the fiscal year now in the record books, the government appears to be on track to meet its target,” said Sonya Gulati, economist at TD Economics.

IE