Ottawa, April 24, 2009
Archived - Release of The Fiscal Monitor
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The Honourable Jim Flaherty, Minister of Finance, today released The Fiscal Monitor for February 2009.
February 2009: budgetary surplus of $0.8 billion
There was a budgetary surplus of $0.8 billion in February 2009, compared to a surplus of $3.0 billion in February 2008. Budgetary revenues were down $2.7 billion, or 11.9 per cent, from February 2008, largely reflecting lower corporate income tax and goods and services tax (GST) revenues. Program expenses decreased by $0.1 billion, or 0.6 per cent, compared to February 2008, largely reflecting lower operating expenses of departments and agencies. Public debt charges decreased by $0.4 billion compared to February 2008.
April 2008 to February 2009: budgetary surplus of $1.3 billion
For the first 11 months of the 2008–09 fiscal year, there was a budgetary surplus of $1.3 billion, down $11.3 billion from the $12.6-billion surplus reported in the same period of 2007–08. Budgetary revenues decreased by $6.0 billion, or 2.7 per cent, primarily reflecting lower corporate income tax and GST revenues, partially offset by growth in personal income tax and other revenues. Program expenses were up $7.4 billion, or 4.2 per cent, due to higher transfer payments, Crown corporation expenses and operating expenses of National Defence. Public debt charges were down $2.0 billion on a year-over-year basis, reflecting a lower average effective interest rate on the stock of interest-bearing debt.
Actions to support the availability of credit under the Government's Extraordinary Financing Framework are reflected in the financial requirement. There was a financial requirement of $81.4 billion in the April to February period of 2008–09 compared to a financial source of $15.0 billion in the same period of 2007–08. This year-over-year difference reflects $51.3 billion in initial purchases of insured mortgage pools through Canada Mortgage and Housing Corporation under the Insured Mortgage Purchase Program, as well as the Budget 2007 announcement that the Government would meet all of the borrowing needs of Canada Mortgage and Housing Corporation, the Business Development Bank of Canada and Farm Credit Canada through direct lending.
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