Federal government posts $1.5B surplus for first two months of fiscal year

OTTAWA –

The federal authorities posted a budgetary surplus of $1.5 billion in April and May, the primary two months of the 2023-24 fiscal 12 months.

In its month-to-month fiscal monitor, the Finance Department says the end result in comparison with a surplus of $5.3 billion throughout the identical interval within the earlier fiscal 12 months.

Revenues rose by $1.3 billion or 1.8 per cent because of larger curiosity and employment insurance coverage premiums, on high of higher proceeds from private revenue tax and a carbon pricing hike.

Expenses rose $3.9 billion or 6.6 per cent as the federal government paid out extra returns beneath the air pollution pricing framework in addition to larger aged advantages and transfers to different ranges of presidency — all partly offset by the wind-down of COVID-19 revenue helps.

Higher rates of interest have pushed up public debt costs by $1.3 billion or 22.8 per cent for the reason that 12 months earlier than.

Meanwhile, web actuarial losses decreased by $100 million or 4.7 per cent.

This report by The Canadian Press was first printed July 28, 2023.