The federal government posted a budgetary surplus of $3.62 billion for the first three months of its 2023-24 fiscal year, compared with a surplus of $10.20 billion in the same period a year earlier.
In its fiscal monitor report, the Finance Department says revenues for the period totalled $110.58 billion, up from $107.88 billion a year earlier, largely reflecting higher personal income tax revenue, interest revenue and EI premium revenue.
Program expenses excluding net actuarial losses amounted to $93.81 billion, up from $87.03 billion in the same period last year.
The government says the higher spending was due to increases in direct program expenses, proceeds from the pollution pricing framework returned and transfers to other levels of government.
Public debt charges totalled $10.69 billion, up from $8.07 billion a year ago, driven by higher interest on treasury bills and marketable bonds, offset in part by lower consumer price index adjustments on real return bonds.
Net actuarial losses amounted to $2.46 billion, down from $2.58 billion.