Feds closer to black ink as deficit slips to $300 million in August

OTTAWA - The federal government inched closer to a budget surplus in August as the deficit slipped to about $300 million for the month, down from $2 billion in August 2013.

In its monthly Fiscal Monitor, the department said the deficit for the April to August period shrank to $1.1 billion, compared with $6.6 billion in the same period last year.

For August alone, revenues were down $7 million, as increases in personal income tax and GST were offset by a decrease in corporate income tax revenues.

Program expenses decreased by $1.6 billion, or 8.4 per cent, largely reflecting a decrease in direct program expenses.

Personal income tax revenues were up by $700 million for the month, but corporate tax revenues were down by $1.2 billion.

Excise taxes and duties were up $500 million, or 14.3 per cent, mostly due to a $400 million jump in GST revenues. Revenues from EI premiums rose by $100 million, reflecting higher earnings.

Transfers to people, including elderly, EI and children's benefits increased by $100 million, or 2.4 per cent.

Transfers to other levels of government rose by $200 million.

Direct program expenses were down $2 billion.

Public debt charges fell by $0.1 billion, or 4.9 per cent.

For the April-August period, total revenues rose by $4.4 billion or 4.2 per cent, to $108.2 billion.

Personal income taxes for the period totalled $53.2 billion, up from $50.9 billion in 2013. Corporate income tax brought in $12.3 billion, compared with $11.4 billion in 2013.