The federal government posted a small deficit in its latest fiscal year, in line with projections in its spring budget as personal and corporate income tax revenue fell in March.
The $2-billion deficit for fiscal 2015-16, based on preliminary estimates from the Finance Department, comes before any year-end adjustments as well as a $3.7-billion commitment to benefits for veterans. The spring budget had projected a $5.4 billion deficit for the year.
The figures come amid an ongoing debate in Ottawa about whether the Conservatives left the Liberals with a deficit after the election last fall. The Conservatives have said the government was on track for a small surplus in fiscal 2015-16, which ended in March, while the Liberals have argued that they inherited a deficit.
In their spring budget, the Liberals announced plans for a $29.4-billion deficit for the 2016-17 fiscal year with billions being spent to help boost economic growth.
For March, the government posted a $9.4-billion deficit compared with a deficit of $3 billion in the same month last year. Program spending increased by $1.3 billion to $31.5 billion, while public debt charges increased $100 million. For the full year, government revenue totaled $289.6 billion, up $10.6 billion from a year ago, while program spending was $266.0 billion, up $16.6 billion.
Source: Press, The Canadian. "Ottawa Posts Deficit for Fiscal Year as Income Tax Revenue Falls in March." CBC news. CBC/Radio Canada, 2016. Web. 27 May 2016.
The $2-billion deficit for fiscal 2015-16, based on preliminary estimates from the Finance Department, comes before any year-end adjustments as well as a $3.7-billion commitment to benefits for veterans. The spring budget had projected a $5.4 billion deficit for the year.
The figures come amid an ongoing debate in Ottawa about whether the Conservatives left the Liberals with a deficit after the election last fall. The Conservatives have said the government was on track for a small surplus in fiscal 2015-16, which ended in March, while the Liberals have argued that they inherited a deficit.
In their spring budget, the Liberals announced plans for a $29.4-billion deficit for the 2016-17 fiscal year with billions being spent to help boost economic growth.
For March, the government posted a $9.4-billion deficit compared with a deficit of $3 billion in the same month last year. Program spending increased by $1.3 billion to $31.5 billion, while public debt charges increased $100 million. For the full year, government revenue totaled $289.6 billion, up $10.6 billion from a year ago, while program spending was $266.0 billion, up $16.6 billion.
Source: Press, The Canadian. "Ottawa Posts Deficit for Fiscal Year as Income Tax Revenue Falls in March." CBC news. CBC/Radio Canada, 2016. Web. 27 May 2016.