Feds post another monthly deficit as 2016-17 deficit hits $12.7B after 8 months
OTTAWA — The federal government ran a deficit of $12.7 billion over the first eight months of its 2016-17 fiscal year — compared with a $1-billion surplus during the same period a year earlier.
The shortfall was due to a $14-billion surge in expenses, including a $7.1-billion increase in direct program costs to the treasury, the Finance Department latest monthly fiscal monitor showed Friday.
The double-digit deficit figure wasn’t a surprise since the Trudeau government has pledged to run deficits over the coming years as it tries to boost the economy through infrastructure investments and larger child benefits.
The fiscal monitor said the April-to-November spike in expenses included multibillion-dollar increases in payments for child and seniors benefits as well as bigger transfers to other levels of government.