Ottawa, October 24, 2006 2006-058
Related document:
Fiscal Monitor - August 2006
The Honourable Jim Flaherty, Minister of Finance, today released The Fiscal Monitor for August 2006.
Highlights include:
August 2006: budgetary surplus of $6 million
There was a budgetary surplus of $6 million in August 2006, compared to a $0.6-billion deficit in August 2005. Revenues increased by $1.1 billion, driven by strong growth in income tax revenues, partially offset by a drop in goods and services tax revenues, reflecting the cut to the GST rate on July 1, 2006. Program expenses increased by $0.5 billion, or 3.6 per cent, reflecting increases in transfers to persons, which now include payments under the new Universal Child Care Benefit program. Public debt charges were down $17 million.
April to August 2006: budgetary surplus of $6.7 billion
For the first five months of the 2006-07 fiscal year, the budgetary surplus is estimated at $6.7 billion, up $2.0 billion from the $4.8-billion surplus in the same period of 2005-06. Revenues were up $5.2 billion, or 6.0 per cent, driven by strong growth in income tax revenues, slightly offset by declines in excise tax and employment insurance premium revenues. Program expenses were up $3.2 billion, or 4.6 per cent, due to both higher transfers and other program expenses. Public debt charges were up $0.1 billion.
The results to date are not representative of results expected for the fiscal year as a whole, as they do not yet reflect the full impact of the measures announced in Budget 2006. A full and complete update of the fiscal outlook will be provided in the upcoming Economic and Fiscal Update.
The Fiscal Monitor is a monthly publication that provides details on the federal government's fiscal performance, including revenues, expenses, the budgetary balance and the financial source/requirement.
___________________________________ For further information, media may contact:
Eric Richer
Press Secretary
Office of the Minister of Finance
613-996-7861
David Gamble
Media Relations
Department of Finance
613-996-8080
