Ottawa, May 27, 2011
2011-039

Archived - Release of The Fiscal Monitor

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The Honourable Jim Flaherty, Minister of Finance, today released The Fiscal Monitor for March 2011.

Highlights

March 2011: budgetary deficit of $6.2 billion

There was a budgetary deficit of $6.2 billion in March 2011, compared to a deficit of $6.4 billion in March 2010.

Revenues decreased by $0.2 billion, or 0.7 per cent, reflecting lower corporate income tax, non-resident income tax and Goods and Services Tax (GST) revenues. Program expenses were down $0.5 billion, or 2.0 per cent. Public debt charges increased by $0.1 billion.

April 2010 to March 2011: budgetary deficit of $34.4 billion

For the April 2010 to March 2011 period, the budgetary deficit stood at $34.4 billion, compared to a budgetary deficit of $47.0 billion reported in the same period of 2009–10. Roughly $17 billion of the $34.4-billion deficit was attributable to actions taken under Canada’s Economic Action Plan, including tax reductions, Employment Insurance related measures and infrastructure funding.

Revenues were up $12.9 billion, or 5.9 per cent, primarily reflecting higher personal and corporate income tax, GST and other revenues. Program expenses were down $1.0 billion, or 0.4 per cent, largely reflecting one-time support provided to the automotive industry in 2009–10, partially offset by increased transfers to other levels of government and an increase in the Government’s provisions for liabilities, including the revaluation of the Government’s liability to Ontario for the province’s one-third interest in the value of the Government’s common shares in General Motors. Public debt charges were up
$1.4 billion on a year-over-year basis, reflecting a higher stock of interest-bearing debt.

The April 2010 to March 2011 monthly results are not the final results for the year as a whole. The final year-end results 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. We expect these end-of-year adjustments to increase the deficit from the $34.4 billion amount reported above.

However, based on the results to date, the final 2010–11 deficit is expected to be lower than $40.5 billion as projected in the March 22 budget, largely due to lower program expenses. A further update will be provided in the upcoming budget to be presented on June 6.

The Government will release the final audited outcome for 2010–11 in the Annual Financial Report of the Government of Canada in the fall.

For further information, media may contact:

Mary Ann Dewey-Plante
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

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