Ottawa runs $5 billion deficit in June

My, how times have changed. Last June, the federal government was flush with cash, running a surplus of $1.6 billion. This past June, however, Ottawa sunk deep into the red, recording a $5 billion deficit. The recession, along with a sharp increase in public spending, are seemingly to blame for the downturn in the federal government’s fortunes. Revenues fell $2.7 billion from their 2008 levels, as Ottawa took in significantly less money in personal and corporate income taxes. Meanwhile, spending was up by $4.2 billion due to an increase in EI payments and the cost of supporting the auto industry. Overall, the government remains on track to run a $50.2 billion deficit for the current fiscal year.

The Canadian Press