Canada Deficit Narrows in October as Tax Revenue Grows
The shortfall narrowed to C$1.68 billion ($1.69 billion) during the month from C$2.13 billion a year earlier, the finance department said in a monthly report from Ottawa. Total revenue rose 8 percent, reflecting receipts of corporate income taxes that came earlier this year, it said. Program expenses rose 6.1 percent to C$20 billion.
Canadian Finance Minister Jim Flaherty is aiming to balance the federal budget before the next federal election expected in 2015 by cutting costs and forgoing new spending, even as revenue growth slows. Canada projects a deficit of C$26 billion in the current fiscal year that began in April, little changed from a year earlier.
The deficit in the first seven months of the fiscal year narrowed to C$10.6 billion from C$13.9 billion in the previous period. Revenue rose 3.6 percent in the period, while program expenses were up 2 percent.
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