Lower spending keeps Ottawa on track to hit deficit target

The federal government says it recorded a $2.3 billion deficit in August, an improvement from the $3 billion shortfall it posted during the same month last year.

The federal government says it recorded a $2.3 billion deficit in August, an improvement from the $3 billion shortfall it posted during the same month last year.

It says the key reason to the better monthly number was a $759-million decrease in program spending.

The Finance Department says the deficit for the first five months of the 2013-14 financial year as a whole now stands at $6.8 billion, slightly lower than the $7.2 billion posted for the same period last year.

The government revealed earlier this week that its deficit for the 2012-13 fiscal year had finalized at $18.9 billion, about $7 billion less than was predicted in the March budget.

Given the trend so far, Ottawa also appears in position to better its $18.7 billion deficit target for this fiscal year as well.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.