Reduced program spending in August keeps Ottawa on track to shrink deficit

BUSINESS

Reduced program spending in August keeps Ottawa on track to shrink deficit

The Canadian Press Published Friday, October 25, 2013 1:42PM EDT

The federal government says it recorded a $2.3 billion deficit in August, an improvement from the $3 billion shortfall it posted during the same month last year.(Jonathan Hayward / THE CANADIAN PRESS)

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OTTAWA - The federal government says it recorded a $2.3 billion deficit in August, an improvement from the $3 billion shortfall it posted during the same month last year.

It says the key reason to the better monthly number was a $759-million decrease in program spending.

The Finance Department says the deficit for the first five months of the 2013-14 financial year as a whole now stands at $6.8 billion, slightly lower than the $7.2 billion posted for the same period last year.

The government revealed earlier this week that its deficit for the 2012-13 fiscal year had finalized at $18.9 billion, about $7 billion less than was predicted in the March budget.

Given the trend so far, Ottawa also appears in position to better its $18.7 billion deficit target for this fiscal year as well.