Canada’s federal government recorded a budget surplus of C$3.9 billion ($3 billion) in the first two months of the fiscal year that began April 1, the finance department said Wednesday in a statement.
That compares to a deficit of C$1.1 billion in the same period last year, according to the department’s fiscal monitor. For the two months, revenue increased 12.8 percent, while program expenses were up 1.5 percent from the prior year.
Canada’s government says it will stick to its pledge of balancing the budget this year even as the nation’s economy has sputtered. The economy probably contracted in the first half and is on pace for full-year growth of 1.1 percent, the Bank of Canada projected last week after lowering interest rates for the second time this year.