OTTAWA - The federal government continues to rake in record levels of revenues from personal and corporate taxes, according to a Finance Department report for the first two months of the 2007-2008 fiscal year.
The department reported a budgetary surplus of $2.7 billion in April and another $800 million in May, about the same as last year.
With the economy booming and unemployment at a 33-year low, the fiscal year got off to a quick start in April for the federal government with revenues increasing 10.6 per cent, or $2 billion.
The big haul came from corporate income tax revenues, which increased 44.6 per cent from April, from last year, and accounted half the month revenue increase.
May saw a slowing down of the revenue stream for the government, with a more modest 2.2 per cent, or $400 million, increase. In both months, GST revenues were slightly lower, but all other streams registered gains.
Program expenses also increased by $2.3 billion, or 8.2 per cent, in the first two months, reflecting higher transfers and other expenses. Public debt charges rose by $300 million.
The department cautioned that the first two months of the fiscal year are not indicative of the final budget surplus, noting that some spending measures in the March budget that have yet to received legislative authority, including significant hikes in social transfers and equalization, will only be tabulated later in the year.
