Canada posts budget deficit for third straight month in October

TORONTO: Canada reported a budget deficit for the third straight month in October as program expenses grew at a faster pace than revenues, the Department of Finance said on Friday.

The federal budget deficit was C$1.1 billion ($811.69 million) for the month, which was wider than a deficit of C$0.4 billion in October 2017.

Program expenses rose by C$2.1 billion, or 8.7 percent, outpacing a 5.5 percent rise in revenues.

For the April to October period of the 2018-19 fiscal year, there was a surplus of C$0.1 billion, which compares with a deficit of C$6.6 billion for the same period in 2017-18. Canada's fiscal year ends on March 31.

Revenues rose 8.3 percent, helped by higher tax revenues, while program expenses were up 3.7 percent.

In November, the Liberal government unveiled a budget update that projected a C$18.1 billion deficit for 2018-19, which was smaller than a revised C$18.8 billion projection made in the February budget.