Canadian Manufacturing

Federal government runs $1.6B surplus for February compared with $1.5B year ago

Surplus for month brought Ottawa's deficit for first 11 months of fiscal year to $11.8-billion

OTTAWA—The federal government ran a surplus of $1.6-billion for February, slightly better than the $1.5-billion it did in the same month last year.

The surplus for the month brought Ottawa’s deficit for the first 11 months of its fiscal year to $11.8-billion compared with a deficit of $12.6-billion at the same point last year.

The Finance Department’s monthly update says government revenue in February rose to $23.4-billion, up $500-million or 2.4 per cent compared with a year earlier.

The increase was mainly due to an 11.2 per cent increase in personal income tax revenue, which was up by $1.1-billion, as well as smaller increases from the goods and service tax, energy taxes and premiums on employment insurance.

That was partially offset by a decline in corporate income taxes, which were down $500-million or 10.7 per cent.

Ottawa’s program spending were up $600-million, or 3.1 per cent, and rose to $19.7-billion due to increased transfers to individuals, other levels of government and the federal government’s own program spending.

Public debt charges totalled $2.138-billion in February, down $125-million or 5.5 per cent from $2.262-billion a year before.

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