Ottawa, October 2, 2009
2009-091

Archived - Release of The Fiscal Monitor

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

Highlights

July 2009: budgetary deficit of $5.8 billion

There was a budgetary deficit of $5.8 billion in July 2009, compared to a surplus of $2.2 billion in July 2008. The July 2009 deficit reflects the impact of the weaker economy on the Government's finances as well as measures introduced under Canada's Economic Action Plan to mitigate its effects. Revenues were down $3.4 billion from July 2008, reflecting lower tax revenues resulting from the weaker economy and personal income tax reductions introduced under Canada's Economic Action Plan, such as the Home Renovation Tax Credit. Program expenses increased by $5.1 billion compared to July 2008, largely reflecting increased Employment Insurance (EI) benefit payments and support for the automotive industry under Canada's Economic Action Plan. Public debt charges decreased by $0.4 billion compared to July 2008 due to lower average effective interest rates.

April to July 2009: budgetary deficit of $18.3 billion

For the first four months of the 2009–10 fiscal year, the budgetary deficit was $18.3 billion, compared to a surplus of $2.9 billion in the same period of 2008–09. Roughly $9 billion of the $18.3-billion deficit was attributable to actions taken under Canada's Economic Action Plan, including tax reductions, enhanced EI benefits and support for the automotive industry. Revenues were down $8.7 billion, or 10.8 per cent, reflecting the impact of the weaker economy and tax relief introduced under Canada's Economic Action Plan. Program expenses were up $13.6 billion, or 20.6 per cent, largely reflecting increased EI benefit payments and support for the automotive industry under Canada's Economic Action Plan. Public debt charges were down $0.9 billion on a year-over-year basis, reflecting lower interest rates.

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