Release Of Canadian Fiscal Monitor For October

Mike Godfrey, Tax-News.com, Washington

23 December 2010

The Canadian Government has released the Fiscal Monitor for October, showing a budgetary deficit of CAD4.1bn in October 2010, compared to a deficit of CAD3.3bn in October 2009.

Revenues increased by CAD0.1bn, or 0.4%, reflecting increases in personal and non-resident income tax revenues, partially offset by declines in corporate income tax and Goods and Services Tax (GST) revenues. Program expenses were up CAD0.8bn, or 4.4%, largely reflecting an increase in transfer payments. Public debt charges increased by CAD0.1bn.

For the first seven months of the 2010–11 fiscal year, the budgetary deficit stood at CAD21.5bn, compared to a deficit of CAD31.9bn reported in the same period of 2009–10. Over CAD10bn of the CAD21.5bn deficit was attributable to actions taken under Canada’s Economic Action Plan, including tax reductions, Employment Insurance related measures and infrastructure funding.

Revenues were up CAD7.9bn, or 6.6%, primarily reflecting higher GST and personal and corporate income tax revenues. Program expenses were down CAD2.9bn, or 2.2%, largely reflecting one-time support provided to the automotive industry in 2009–10, partially offset by increased transfers to other levels of government in 2010–11. Public debt charges were up CAD0.4 billion on a year-over-year basis.

Recommended