The federal government ran a $1.7 billion deficit in August, leaving it with an overall surplus for April to August of $1.2 billion, the Finance Department said today.

In 2007, the government ran an August deficit of about $100 million, and posted a $6.6 billion accumulated surplus for the April-August period.

The Finance Department said August revenues were up by about $100 million, or 0.5%, from August 2007, because of higher personal income tax but a lower corporate income tax, goods and services tax, and other sales and excise taxes.

The government’s program expenses increased by $1.5 billion, or 10.1%, compared to the same month of last year, due to higher transfer payments and operating expenses of departments and agencies.