Canada Prime Minister Justin Trudeau makes his way to his seat at the start of the First Ministers Meeting in Ottawa, Tuesday, Oct. 3, 2017. (Adrian Wyld/The Canadian Press via AP)

Liberal government runs $1.4B budgetary deficit in first two months of 2019-20

The report says the government ran a $2.1-billion deficit in April and a $700-million surplus in May

A new preliminary estimate says the federal government posted a budgetary deficit of $1.4 billion through the first two months of the current fiscal year.

The Finance Department’s numbers show the combined shortfall for April and May 2019 came after government spending and public debt charges expanded at a pace about three times higher than revenues.

The report says expenses during those two months jumped up 13.5 per cent — or $6.3 billion — compared to a year earlier, mostly due to increases in direct program spending and transfers to other levels of government.

The department’s latest fiscal monitor says over that period public debt charges rose 13.3 per cent, or $600 million.

Government revenues only provided a partial offset, compared to a year earlier, by increasing 4.2 per cent — or $2.3 billion — mostly because of higher tax revenues.

READ MORE: Five highlights in the 2019 federal budget

The report says the government ran a $2.1-billion deficit in April and a $700-million surplus in May.

The combined deficit compares to a $3.2-billion surplus over the same period in 2018.

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

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

New Eco-Depot site proposed for Ashcroft, Cache Creek

TNRD staff directed to pursue the ourchase of property at the former chip relaod site off Highway 1

Oregon couple’s stolen truck located at Deep Creek, boat still missing

Jim and Kathy Jantz are thankful for the help they have received so far in Williams Lake

Two bodies found near Spences Bridge confirmed as those of missing Surrey men

Ryan Provencher and Richard Scurr have been missing since July 17

Many hands make light work at historic Cornwall fire lookout

Volunteers worked to restore the site, which a Journal reader remembers from a 1955 visit

Phase 2 work set to get started at 10 Mile Slide site

Work is projected to be complete by spring 2021 and will be monitored for two more years

Ethnic media aim to help maintain boost in voting by new Canadians

Statistics Canada says new Canadians made up about one-fifth of the voting population in 2016

Speculation tax forces sale of Greater Victoria’s iconic ‘Tulip House’

Bob and Jan Fleming selling their retirement home famous for its thousands of tulips

New police force in Surrey must avoid VPD, RCMP errors made in Pickton case: Oppal

Boots are scheduled to be on the ground by spring 2021

Man at centre of dropped HIV-disclosure case sues province and 10 cops

Brian Carlisle of Abbotsford says Mission RCMP defamed him and were ‘negligent’ in their investigation

Conan turns to the Property Brothers for tips on buying Greenland

Jonathan Scott suggests removing glaciers and mountains to bring in ‘more natural light’

Forests minister visits B.C. town rocked by multiple mill shutdowns

A third of Mackenzie turns out for rally, not much to cheer about

B.C. sockeye returns drop as official calls 2019 ‘extremely challenging’

Federal government says officials are seeing the same thing off Alaska and Washington state

Expanded support to help B.C. youth from care attend university still falling short

Inadequate support, limited awareness and eligibility restrictions some of the existing challenges

Most Read