The Canadian Finance Department on Friday presented its Fiscal Monitor for September 2009, showing that the budget deficit has deteriorated significantly when compared year-on-year to the CAD0.6bn deficit recorded in September 2008. Statistics for this year show a deficit of CAD5bn due to a significant drop in tax revenues.
According to the government statement:
“The September 2009 deficit reflects the impact of the weaker economy on the government's finances, as well as measures introduced under Canada's Economic Action Plan. Revenues were down CAD3.6bn from September 2008, driven by declines in income tax revenues, as well as goods and services tax (GST) and other revenues."
"Program expenses increased by CAD1.1bn compared to September 2008, largely reflecting higher Employment Insurance (EI) benefit payments and higher transfers to other levels of government.”
For the first half of the 2009–10 fiscal year, April 2009 through to September 2009, the budgetary deficit was CAD28.6bn, compared to a budgetary surplus of CAD0.5bn reported in the same period of 2008–09.
The Finance Department went on to reveal that over CAD11bn of the CAD28.6bn deficit was attributable to actions taken under Canada's Economic Action Plan, including tax reductions, enhanced EI benefits and support for the automotive industry. Revenues were down CAD14.2bn, or 12.3%, reflecting declines across most revenue streams, particularly personal and corporate income tax and GST revenues.
“The decline in revenues through September is generally in line with the projected quarterly pattern of economic growth, in which nominal gross domestic product, the broadest single measure of the tax base, is expected to be weak through the first six months of the fiscal year before strengthening in the October to December timeframe," the Department explained, concluding:
"The impact of the economic profile on revenue growth highlights the sensitivity of the 2009–10 revenue projections to the economic recovery.”
.
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment