Ottawa's deficit hits $14B through first nine months of fiscal year

The federal government ran a budgetary shortfall of $14 billion over the first nine months of the fiscal year, compared with a $3.2-billion surplus over the same period a year earlier.

The Finance Department's monthly fiscal monitor says federal program expenses between April and December rose $16.7 billion, or 8.8 per cent, compared with the same stretch a year ago.

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A closer look at the numbers shows that major government transfers to individuals, including seniors benefits, were up $5.7 billion, or 9.3 per cent, while direct-program spending rose $8.9 billion, or 11.3 per cent.

Government revenues, such as those pulled in from income taxes, were down $1.9 billion or 0.9 per cent compared with 2015-16.

The Trudeau government is projecting a $25.1-billion deficit for 2016-17 as part of its plan to run several double-digit shortfalls over the coming years in an effort to lift the economy through infrastructure investments and larger child benefits.

The Finance Department also says Ottawa posted a $1.3-billion deficit in December alone compared to a $2.2-billion surplus in December 2015.

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