OTTAWA (Reuters) - Canada posted a budget deficit of C$1.47 billion ($1.11 billion) in July as program expenses increased much faster than revenues, the federal finance ministry said on Friday.
Revenues grew by 3.6% in July on higher income tax receipts while program costs jumped by 8.9% on higher transfers to individuals and other levels of government as well as direct program expenses.
For the first four months of the 2019/2020 fiscal year, Canada posted a budget deficit of C$1.56 billion compared to a surplus of C$4.44 billion in the same period in 2018/2019.
Revenues between April and July climbed by 3.9% on higher tax income while program expenses posted a 9.5% gain on major transfers to people and other levels of government.
Reporting by David Ljunggren