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Federal deficit in June shrinks to $2.2B

The budget deficit in June fell to $2.2 billion, lower from the same month a year earlier by $600 million, the federal government announced Friday.

Deficit so far this year at $5.5B

The budget deficit in June fell to $2.2 billion, lower from the same month a year earlier by $600 million, the federal government announced Friday.

Revenue grew faster than spending.

The amount by which Ottawa's spending outstripped revenue for the first three months of the fiscal year — from April to June — totaled $5.5 billion. That compared with $7.2 billion in the same period in 2010.

The government said the results were "broadly consistent" with its 2011 budget plan.

Revenue increased to $19.44 billion in June, up from $17.89 billion a year ago, as the government's take from both personal and corporate income taxes grew.

Personal tax flows rose 7.5 per cent from a year ago, while funds from corporate income tax were higher by 8.2 per cent.

Spending on government programs grew to $19.03 billion from $18.11 billion. The cost of servicing the debt was $2.61 billion, up from $2.58 billion.

With files from The Canadian Press

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