Minister of Finance Ralph Goodale today announced a $1.6 billion surplus for fiscal year 2004–05. It’s the federal government’s eighth consecutive annual surplus.

The suprplus is roughly what Finance Minister Ralph Goodale had predicted for fiscal 2004-05, which ended March 31.

The $1.6-billion surplus has been applied to reduce Canada’s federal debt, which now stands at $499.9 billion. Federal debt as a percentage of the economy was 38.7% in 2004–05, down roughly 30 percentage points from its peak of 68.4% in 1995–96.

“Canada has made more progress in reducing its debt burden than any other G7 country,” said Goodale, in a release. “By reducing federal debt by a total of $63 billion in the last eight years, we have freed up some $3 billion in interest savings every year that can be directed to the priorities of Canadians.”