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

PHOTOS: Eighth annual Wood Show in Lacombe

Central Alberta Wood Workers and Woodturners Guild hosted its annual show recently

Central zone down to 16 active COVID-19 cases

Alberta Health Services’ central zone is down to 16

Six months into the pandemic, at least some things are getting back to normal for rural producers

‘Things are kind of getting more normal it seems… (we’re) just having to learn how to deal with everything how it is.’

RCMP remind Albertans to practice rail safety

In 2019, Alberta had the second highest number of total railway crossing incidents

No safe mask option for bearded members, RCMP says, but force is exploring solutions

RCMP says respirator not mandatory in all front-line situations, but sometimes needed to reduce risk

Lightning strike: Tampa Bay blanks Dallas 2-0 to win Stanley Cup

Hedman wins Conn Smythe Trophy as playoff MVP

Liberals seek to fast track new COVID-19 aid bill after CERB expires

Government secured NDP support for legislation by hiking amount of benefits by $100 to $500 per week

‘Worst of the worse cases:’ Alberta horse owners on alert for outbreak of fever

An outbreak of the Potomac horse fever has been declared in Alberta

The holiday everyone needs this year: Vote for your favourite in Fat Bear Week 2020

Voters will get to decide who gets to take home this year’s most coveted prize

Canadian ski resorts wrestle with pandemic-vs.-profit dilemma as COVID-19 persists

Few are actually restricting the total number of skiers they allow on the hill

End of CERB means uncertainty for some, new system for others

As of a week ago, the CERB had paid out $79.3 billion to 8.8 million people

No winning ticket for Friday night’s $50 million Lotto Max jackpot

Jackpot for the next draw will grow to approximately $55 million

Most Read