The federal government is still bringing in a lot more money than it's spending, the latest figures from the Finance Department show.

The treasury generated a budget surplus of $1.4 billion in July, bringing the total surplus from the first four months of the current fiscal year (April to July) to $7.8 billion.

That's more than $1 billion higher than the surplus recorded during the same four-month period last year.

July's budget surplus was due mainly to a $1 billion increase in corporate income tax revenues.   

The latest fiscal update came just one day after the federal government announced a huge $13.8 billion surplus for the fiscal year that ended in March — far above the $9.2 billion surplus projection made in its March budget.

It's bound to increase pressure on the Conservative government to bring in more personal and corporate tax cuts — especially with speculation swirling that a fall election could be called.

The government has already pledged to use the savings from lower interest payments on the debt to cut taxes. The savings for the 2006-07 year amounted to $725 million. 

Finance Minister Jim Flaherty said Thursday the Tories are planning more tax relief. "Stay tuned because there's more to be done," he said.