11°c A few clouds
18°c Sunny
The Canadian Press - ONLINE EDITION
Federal deficit totalled $600M in December, $13B for fiscal year so far
OTTAWA - The federal government ran a deficit of $600 million in December, bringing the total for the first nine months of the current financial year to $13 billion.
The December deficit was $100 million higher than in the final month of 2011 but the nine-month total was $3.1 billion lower thanks to savings in previous months of the current financial year.
In its November fiscal update, the government said it expected to post a $26 billion deficit for the year, up $5 billion from the March budget forecast.
TD Bank economist Jonathan Bendiner said Friday the nine-month results suggests the government could be slightly ahead of its target.
"However, given the lack of momentum currently seen in the Canadian economy over recent months, there may be room for the deficit to grow in the final stretch of fiscal year 2012-13," Bendiner wrote in a report.
"There have also been signals that the depressed oil price environment faced by Canadian oil producers will have an impact on fiscal coffers."
Earlier this month, Finance Minister Jim Flaherty cautioned that government revenues were being hurt by lower-than-expected commodity prices, particularly Alberta crude, which is being sold as a discount to world prices due in part to limits in pipeline capacity.
The December deficit grew as program expenses increased by $700 million from a year earlier to $20.3 billion for the month.
Payments for benefits for the elderly increased by $200 million, while employment insurance benefit payments increased by $200 million. Children’s benefits increased by $15 million.
Meanwhile, major transfers to other levels of government increased by $600 million, while direct program spending was down $200 million.
The federal government's revenue grew by $600 million to $22.2 billion, with personal income tax revenues up $1 billion and corporate income tax revenues were down $400 million.
Non-resident income tax revenues were down $200 million, while excise taxes and duties were up $400 million, due to an increase in GST revenue.
EI premium revenues were up $44 million and other revenues were down $200 million.
Public debt charges dropped by about $100 million.
More Business
- Back to Top
- Return to Business
Poll
Most Popular Business
- New owner for lumber stores
- Housing slowdown to worsen, cost 150,000 jobs, says mortgage group
- Creative industries can fuel a city's economic engine
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Emerging economies seen as key
- Ex-Ford Motors executives charged in tortures of union workers during Argentina's dictatorship
- North American markets climb on gold, energy gains and positive Fed speeches
- Manitoba Movers
- A closer look at the 3 new game consoles from Microsoft, Nintendo and Sony
- Paying bills and consumer consumption hurting Canadians' ability to save: study
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- New owner for lumber stores
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Creative industries can fuel a city's economic engine
- Bridging the gap
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Chinese court sentences entrepreneur to death in latest crackdown on underground banking
- Ex-'Pegger seeks to grow local businesses
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Local boy leads Great-West
- New owner for lumber stores
- Developers to unveil plans for bold downtown tower
- Bridging the gap
- Boreal Forest conservation negotiations end in failure after three years
- Portage, Winnipeg law firms join forces
- Canadian telecom company Telus signs deal to buy Mobilicity for $373 million
- Biden says Jewish leaders in Hollywood, social media drove changing attitudes on gay marriage
- Arizona restaurant becomes poster child for dark side of online customer reviews
- Housing slowdown to worsen, cost 150,000 jobs, says mortgage group
- New owner for lumber stores
- Ex-'Pegger seeks to grow local businesses
- Developers to unveil plans for bold downtown tower
- Bridging the gap
- Late deal in workplace sex-harassment case
- Diversification spurs Exchange Income's growth
- More than a new boss
- Viterra plans $20 million capacity upgrade at four Saskatchewan grain terminals
- There are lots of I's in 'team'
- Transcona transformation
- Transcona transformation
- New owner for lumber stores
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Winnipeg Boeing plant set to expand
- Local boy leads Great-West
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.