Budget Deficit Narrowed

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September 1, 2010

Photo by Ian Muttoo

The Canadian budget deficit narrowed in June, the government finance department reported. If you compare the $2.8 billion deficit which was recorded in June 2010, with the same month last year, at $4.98 it was almost double.

Looking at the cumulative deficit of 2009 and 2010 in the April to June period, 2010 seems to be much better. The shortfall for Canada fell from $12.5 billion to $7.2 billion over the year. This conforms to the plans of the government, who lowered program spending in order to achieve the planned $49.2 billion deficit for 2010. In June, program spending declined by 13 percent, to $18 billion and in the April to June period, program spending fell by 5.5 percent to $54.4 billion from 2009 to 2010.

Currently it looks like such a deficit can indeed be achieved, and thus the government policies seem to have been quite effective so far. It still is early to speak about it as a definite thing, though.