Close X
Wednesday, November 27, 2024
ADVT 
National

Trudeau Government Posted $300M Surplus In First Nine Months Of 2018-19

Darpan News Desk The Canadian Press, 22 Feb, 2019 09:50 PM

    OTTAWA — A preliminary analysis of the federal books says the government ran a budgetary surplus of $300 million through the first nine months of the fiscal year.


    The surplus is an improvement compared with the April-to-December period in 2017-18, when Ottawa posted a deficit of $8.9 billion, according to Friday's release of the Finance Department's monthly fiscal monitor.


    The document said overall revenues were up $19.3 billion, or 8.7 per cent, compared with the same period last year, due in large part to higher revenues from taxes and incoming employment insurance premiums.


    Program expenses were up $8.4 billion, or 3.9 per cent, compared with the same nine-month stretch last year, because of increases in major transfers to individuals, to other levels of government and due to an increase in direct program spending.


    The fiscal monitor also said public debt charges rose $1.7 billion, or 10.3 per cent, mostly due to the higher effective interest rate on government debt and the higher inflation adjustments.


    For the month of December alone, the government posted a surplus of $2.5 billion thanks to a revenue increase of $2.6 billion. In December 2017, Ottawa ran a $500-million surplus.


    The Liberals' fall fiscal update, released in November, predicted the government was on track to run annual shortfalls of $18.1 billion in 2018-19, $19.6 billion in 2019-20 and $18.1 billion in 2020-21.


    Finance Minister Bill Morneau was asked Friday by reporters whether the improvement shown in the fiscal monitor would translate into smaller deficits.


    Morneau, who will introduce updated fiscal projections in his March 19 federal budget, sidestepped the question and said the economy is doing well. He insisted the stronger bottom line is a result of government investments.


    "That said, what you saw this morning was one month's snapshot," Morneau said in Toronto.


    "And in order to look at the results you have to look at the entire year. We continue to see this year going well, but we will be prudent and cautious in the way that we manage the economy."

    Canadians should expect to hear a lot more about the state of the federal books in the leadup to the October election.


    The Liberals have faced criticism from the opposition Conservatives and some economists for failing to provide a timeline to balance the budget. There are warnings the government could face big fiscal challenges when the next economic downturn arrives.


    After the 2015 election, the Trudeau government abandoned campaign vows to run yearly shortfalls of no more than $10 billion and to balance the books by 2019. Instead, it has focused on reducing the net debt-to-GDP ratio — a measure of how burdensome the national debt is — each year.


    The government argues the extra spending, in areas such as infrastructure, has been necessary to help lift Canada's long-term growth.

    MORE National ARTICLES

    Pro-Pipeline Protest Convoy Approaches Ottawa After Rolling Across Country

    Pro-Pipeline Protest Convoy Approaches Ottawa After Rolling Across Country
    The core message is we need immediate action for our pipelines to get in the ground, to get to tidewater and to the rest of Canada

    Pro-Pipeline Protest Convoy Approaches Ottawa After Rolling Across Country

    'Making This Up:' Study Says Oilsands Assessments Marred By Weak Science

    'Making This Up:' Study Says Oilsands Assessments Marred By Weak Science
    EDMONTON — Dozens of oilsands environmental impact studies are marred by inconsistent science that's rarely subjected to independent checks, says a university study.

    'Making This Up:' Study Says Oilsands Assessments Marred By Weak Science

    Carole James Says B.C. Budget Puts Priorities On NDP's Poverty, Environment Plans

    Carole James says her budget builds on the minority New Democrat government's goals of making life more affordable, improving services and ensuring a sustainable economy.

    Carole James Says B.C. Budget Puts Priorities On NDP's Poverty, Environment Plans

    Bad Weather, Lack Of Pilot Experience Cited In Quebec Crash That Killed Three

    Bad Weather, Lack Of Pilot Experience Cited In Quebec Crash That Killed Three
    The Robinson R44 Raven I helicopter left Saint-Georges-de-Beauce, Que., Feb. 1, 2018 with the pilot and 2 passengers on board headed for the province's Lanaudiere region.

    Bad Weather, Lack Of Pilot Experience Cited In Quebec Crash That Killed Three

    Mermen Calendar Targets 'Toxic Masculinity,' Raises Big Money For Charities

    This past weekend, the Newfoundland and Labrador Beard and Moustache Club gave a cheque for more than $202,000 to Violence Prevention NL.

    Mermen Calendar Targets 'Toxic Masculinity,' Raises Big Money For Charities

    'Violent' Prince George Man Arrested In Alberta After Canada-Wide Warrant Issued

    Mounties say the warrant for Tal Kalum LaRiviere was issued Feb. 2.

    'Violent' Prince George Man Arrested In Alberta After Canada-Wide Warrant Issued