Ottawa runs $7.8B deficit in first half of fiscal year

The federal government ran a $7.8-billion deficit through the first half of its fiscal year, compared to the surplus of $1.6 billion it posted over the same time frame last year.

The figures were released Friday in the September edition of the Fiscal Monitor, which reports monthly on the state of the country's finances.

The Finance Department said revenues were down $1.9 billion, or 1.3 per cent, year over year,  largely reflecting the $2.1-billion gain the government realized on the sale of its remaining holdings of General Motors common shares in April 2015,

Meanwhile, spending over the same six-month period was higher by $8.9 billion, or seven per cent, partly owning to a $3.2-billion increase in transfer to individuals and a $4.1-billion rise in direct programing spending.

For September of this year, Ottawa posted a deficit of $2.4 billion, double the $1.2-billion deficit it ran back in Sept. 2015.

Federal revenues for the month came in at $21.7 billion, off by about $300 million from Sept. 2015, as corporate tax revenues dropped by about $400 million while personal income tax revenues were up by $300 million.

At the same time, program expenses in Sept. 2016 were $22.2 billion, up $1 billion year over year, as spending on elderly, EI and children's benefits rose by about $900 million.