The federal government ran up a budgetary deficit of $3.6 billion in March, compared to a deficit of $1.2 billion a year ago, the Department of Finance said Friday.
Budgetary revenues were down $3.1 billion, or 14.4%, from March 2008, reflecting declines in tax revenues, Finance Canada said.
Program expenses were down $0.6 billion, or 2.8%, from March 2008, largely reflecting lower operating expenses of departments and agencies.
Public debt charges were $0.2 billion lower than in March 2008.
For the April 2008 to March 2009 period, there was a budgetary deficit of $2.2 billion, compared to a surplus of $11.4 billion reported in the same period of 2007–08. The budgetary balance through March 2009 is $1.1 billion lower than projected for the year as a whole in 2009 federal budget, Finance Canada said.
Budgetary revenues decreased by $9.2 billion, or 3.8%, primarily reflecting declines in corporate income tax and goods and services tax revenues, partially offset by growth in personal income tax and other revenues.
Program expenses were up $6.8 billion, or 3.5%, due to higher transfer payments.
Public debt charges were down $2.3 billion on a year-over-year basis, reflecting a lower average effective interest rate on the stock of interest-bearing debt.
IE