Ottawa, October 23, 2009
2009-101

Archived - Release of The Fiscal Monitor

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

Highlights

August 2009: budgetary deficit of $5.3 billion

There was a budgetary deficit of $5.3 billion in August 2009, compared to a deficit of $1.9 billion in August 2008. The August 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. Revenues were down $2.0 billion from August 2008. Roughly half of the decline was due to a significant drop in corporate income tax revenues. Program expenses increased by $1.7 billion compared to August 2008, largely reflecting much higher Employment Insurance (EI) benefit payments. Public debt charges decreased by $0.2 billion compared to August 2008 due to lower average effective interest rates.

April to August 2009: budgetary deficit of $23.7 billion

For the first five months of the 2009–10 fiscal year, the budgetary deficit was $23.7 billion, compared to a budgetary surplus of $1.1 billion reported in the same period of 2008–09. Roughly $11 billion of the $23.7-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 $10.6 billion, or 10.9 per cent, roughly half of which resulted from a significant decline in corporate income tax revenues. Program expenses were up $15.3 billion, or 18.6 per cent, mainly reflecting higher EI benefit payments and support for the automotive industry. Public debt charges were down $1.1 billion on a year-over-year basis, reflecting lower interest rates.

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Chisholm Pothier
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