The federal government today announced that there was a budgetary surplus of $400 million in October, pushing the fiscal year to date surplus (April to October) to $5.8 billion.

October’s total compared to a $1.6 billion surplus in October 2005. Revenues decreased by $200 million, or 1%, reflecting both the goods and services tax rate reduction and a number of one-time factors affecting income tax revenues.

Program expenses for October increased by $1 billion, or 7%, reflecting increases in transfer payments and departmental operating expenses. Transfer payments, which account for about two-thirds of total program expenses, increased by $600 million, or 6.3%. Public debt charges were down $19 million.

For the first seven months of the 2006–07 fiscal year, the budgetary surplus is estimated at $5.8 billion, down $700 million from the $6.5 billion surplus posted in the same period of 2005–06.

Revenues for the period were up $5.4 billion, or 4.4%, reflecting solid growth in income tax revenues, partially offset by declines in excise taxes and employment insurance premium revenues. Program expenses were up $6.0 billion, or 6.2%, due to both higher transfers and other program expenses. This includes transfers to other levels of government, which were up $1.5 billion, or 6.9%. Public debt charges were up $100 million.