The federal government posted a surplus of $1.7 billion during the first six months of the 2022-23 fiscal year.
In its monthly fiscal monitor, the finance department says the surplus between April and September compares to a deficit of $68.6 billion reported for the same period last year.
Compared to the same period in the previous fiscal year, government revenues were up $32.8 billion, or 18.6%, as revenue streams continue to improve.
Program expenses were also down $40.3 billion, or 17.9%, largely due to the expiration of Covid-19 measures.
Higher interest rates and inflation have driven up the cost of public debt charges by $5.6 billion, or 47.8%, compared to the same period last year.
Net actuarial losses were down $2.8 billion, or 36.1%.