Ottawa posts small $114M surplus to start fiscal year

Ottawa posted a small surplus of $114 million in April and May combined, the Department of Finance said Friday.

Ottawa's fiscal year begins on April 1st and runs until March 31, and over a 12 month period Ottawa's books will typically seesaw between deficit and surplus from month to month. The government says it tracks its books on "an accrual basis" which means it registers "government revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid."

The federal government says it took in $706 million more than it spent in April, but spent $592 million more than it took in the next month. The two months put together adds up to a surplus of $114 million.

For comparison purposes, in fiscal year 2015, Ottawa posted a surplus of almost $4 billion for April and May. But much of that was due to Ottawa selling off its stake in General Motors, something which netted a one-time bonanza.

Revenues from personal and corporate income taxes increased, but overall revenue decreased by $1 billion because of a drop-off in excise taxes, duties and revenue from Crown corporations.

At the same time, expenses increased by about $3.5 billion, largely due to higher payouts of benefits for children, seniors and those on employment insurance, as well as direct program spending.

Public debt charges decreased by $0.7 billion, or 13.5 per cent.