Feds post $5.8B deficit in first half of 2019-20 fiscal year

Compare that to a surplus of $1.2 billion in the same period last year

People make their way along Parliament Hill in Ottawa on Wednesday, Nov. 13, 2019. THE CANADIAN PRESS/Sean Kilpatrick

The federal government ran a deficit of $5.8 billion over the first six months of its 2019-20 fiscal year compared with a surplus of $1.2 billion in the same period last year.

The Finance Department says the deficit came as program expenses climbed $12.4 billion to $156.9 billion compared with $144.5 billion last year.

The increase in spending was due to increases in major transfers to persons, major transfers to other levels of government and direct program expenses.

Revenues were up $6.1 billion at $164.1 billion compared with $158 billion a year ago, due to increases in personal and corporate income tax revenues, according to the department’s monthly fiscal monitor.

Public debt charges increased by $700 million to nearly $13 billion compared nearly $12.3 billion with a year ago due to higher consumer price index adjustments on real return bonds and a higher average effective interest rate on Government of Canada treasury bills.

READ MORE: Re-elected Liberals would still run big deficits, despite new taxes

The Liberal government forecasted a deficit in last spring’s budget of $19.8 billion for the 2019-20 fiscal year.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Salmon closures announced for Skeena and Nass watersheds

DFO notice expands on May 21 chinook ban throughout Skeena watershed

COVID-19: Increased federal funding for off-reserve Indigenous services welcomed news in north

Funding to benefit organizations such as friendship centres during pandemic

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Water recovery team stands down search for missing man in Stellako River

Jason Bouchard was in a boat with a friend that overturned in the river May 16

COVID-19: PG Community Foundation to disperse community support funds

$197,630 in funding announced by the Prince George Community Foundation

B.C. legislature coming back June 22 as COVID-19 emergency hits record

Pandemic restrictions now longer than 2017 wildfire emergency

DFO allowing at-sea observers again if safe work procedures in place

May 15 fishery notice lays out conditions for allowing at-sea observers onboard amid COVID-19

B.C.’s essential grocery, hardware store employees should get pandemic pay: retail group

Only B.C.’s social, health and corrections workers are eligible for top-ups

COLUMN: Canada needs to remember rural communities as thoughts turn to pandemic recovery

Small towns often rely on tourism, which has been decimated by COVID-19

Edmonton, Vancouver and Toronto vying to be NHL hubs, but there’s a catch

The NHL unveiled a return-to-play plan that would feature 24 teams

Introducing the West Coast Traveller: A voyage of the mind

Top armchair travel content for Alaska, Yukon, BC, Alberta, Washington, Oregon and California!

B.C. sees 9 new COVID-19 cases, one death as officials watch for new cases amid Phase Two

Number of confirmed active cases is at 244, with 37 people in hospital

Nanaimo senior clocked going 50 km/hr over limit says her SUV shouldn’t be impounded

RCMP say they can’t exercise discretion when it comes to excessive speeding tickets

Illicit-drug deaths up in B.C. and remain highest in Canada: chief coroner

More than 4,700 people have died of overdoses since B.C. declared a public health emergency in early 2016

Most Read