September 27, 2019 / 3:05 PM / 17 days ago

Canada posts budget deficit in July on higher program expenses

FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch

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

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