Ottawa, August 21, 2009
2009-078

Release of The Fiscal Monitor

Related document:

• The Fiscal Monitor

The Honourable Jim Flaherty, Minister of Finance, today released The Fiscal Monitor for June 2009.

Highlights

June 2009: budgetary deficit of $5.0 billion

There was a budgetary deficit of $5.0 billion in June 2009, compared to a surplus of $1.6 billion recorded in June 2008. Revenues were down $2.7 billion, or 13.1 per cent, from June 2008, largely reflecting lower revenues from income taxes and the goods and services tax (GST). Program expenses increased by $4.2 billion, or 25.2 per cent, compared to June 2008, largely reflecting increased Employment Insurance (EI) benefit payments and the impact of support for the automotive industry. Public debt charges decreased $0.3 billion compared to June 2008 due to lower average effective interest rates.

April 2009 to June 2009: budgetary deficit of $12.5 billion

For the first three months of the 2009–10 fiscal year, the budgetary deficit stood at $12.5 billion, down $13.3 billion from the $0.8-billion surplus reported in the same period of 2008–09. Revenues decreased by $5.3 billion, or 9.1 per cent, mainly reflecting declines in personal and corporate income tax and GST revenues. Program expenses were up $8.5 billion, or 17.3 per cent, due primarily to higher transfer payments. Public debt charges were down $0.5 billion, on a year-over-year basis, reflecting lower interest rates.

Lower revenues and higher expenses also reflect the impact of measures announced under Canada’s Economic Action Plan. The results for the first three months of the 2009–10 fiscal year are consistent with the update of the fiscal outlook for 2009–10 published in Canada’s Economic Action Plan: A Second Report to Canadians on June 16, 2009, in which a budgetary deficit of $50.2 billion was projected for the fiscal year.

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For further information, media may contact:

Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861

David Barnabe
Media Relations
Department of Finance
613-996-8080

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