Ottawa, May 28, 2010
Archived - Release of The Fiscal Monitor
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The Honourable Jim Flaherty, Minister of Finance, today released The Fiscal Monitor for March 2010.
March 2010: budgetary deficit of $6.4 billion
There was a budgetary deficit of $6.4 billion in March 2010, compared to a deficit of $3.5 billion in March 2009. Revenues were up $4.3 billion from March 2009, driven by increases in income tax revenues and Goods and Services Tax revenues, which were partially offset by a decline in other revenues. Program expenses increased by $7.2 billion compared to March 2009, largely reflecting the inclusion in the March 2010 results of information available to date regarding year-end accruals and valuation adjustments to assets and liabilities in respect of the 2009–10 fiscal year. Public debt charges decreased by $12 million compared to March 2009.
April 2009 to March 2010: budgetary deficit of $47.0 billion
For the April 2009 to March 2010 period, the budgetary deficit was $47.0 billion, compared to a deficit of $2.2 billion reported in the same period of 2008–09. Close to $19 billion of the $47.0-billion deficit was attributable to actions taken under Canada’s Economic Action Plan. Revenues were down $12.7 billion, or 5.5 per cent, mainly reflecting declines in income tax revenues and other revenues. Program expenses were up $33.6 billion, or 16.6 per cent, mainly reflecting higher Employment Insurance benefit payments, higher transfers to other levels of government, support for the automotive industry, and information available to date regarding year-end accruals for other program expenses. Public debt charges were down $1.5 billion on a year-over-year basis, reflecting lower interest rates.
The April 2009 to March 2010 monthly results are not the final results for the year as a whole. The final year-end results, which will be available in the fall, will also reflect end-of-year adjustments that will be made once further information becomes available, including the accrual of tax revenues reflecting assessments of tax returns and valuation adjustments for assets and liabilities.
A discussion of the March results and the Budget 2010 forecast for 2009–10 is provided in The Fiscal Monitor. While the results to date—particularly for budgetary revenues—are stronger than anticipated in the 2010 budget, given the potential for further adjustments referred to above, as well as ongoing global economic uncertainty, the Government judges that the fiscal projection set out in the 2010 budget remains broadly on track.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
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