With deficits coming in better than expected, the federal government is on track to balance its budget next year, Finance Minister Joe Oliver said Monday.
Oliver released the government’s annual financials for 2013–2014, which reports that the deficit for the year fell to $5.2 billion. This represents a $10.7-billion improvement from the projections in 2014 budget due to both lower-than-expected program spending and higher-than-anticipated revenues.
Revenues came in $271.7 billion for 2013–2014, which is $7.7 billion more than forecast; and expenses were $276.8 billion, or $3.0 billion less than forecast in the budget. The government says that it remains on track to return to budgetary balance in 2015. At that point, Oliver says that it will “offer tax relief”.
The report also restates the deficit for 2012-2013 to $18.4 billion from $18.9 billion to reflect two accounting changes made in 2013–2014; and, the deficit for 2014-2014 has also been restated, from $16.6 billion to $15.9 billion.
A revised fiscal outlook will be provided in the fall update of economic and fiscal projections.