There was a budgetary surplus of $37 million in January 2009, compared with a surplus of $1.2 billion recorded in January 2008. Budgetary revenues were down $2.1 billion, or 9.8 per cent, from January 2008, largely reflecting lower corporate income tax and goods and services tax (GST) revenues. Program expenses decreased by $0.6 billion, or 3.1 per cent, compared to January 2008, reflecting a decrease in operating expenses of departments and agencies. Public debt charges decreased by $0.4 billion compared to January 2008.
For the first ten months of the 2008-09 fiscal year, there was a budgetary surplus of $0.5 billion, down $9.1 billion from the $9.6-billion surplus reported in the same period of 2007-08. Revenues decreased by $3.3 billion, or 1.7 per cent, primarily reflecting declines in corporate income tax and GST revenues, partially offset by growth in personal income tax and other revenues. Program expenses were up $7.5 billion, or 4.7 per cent, due to higher transfer payments, Crown corporation expenses and operating expenses of National Defence. Public debt charges were down $1.7 billion on a year-over-year basis, reflecting a lower average effective interest rate on the stock of interest-bearing debt.
Actions to support the availability of credit are reflected in the financial requirement. There was a financial requirement of $67.5 billion in the April to January period of 2008-09 compared to a financial source of $14.3 billion in the same period the previous year. This year-over-year difference reflects $41 billion in initial purchases of insured mortgage pools through Canada Mortgage and Housing Corporation under the Insured Mortgage Purchase Program, as well as the Budget 2007 announcement that the Government would meet all of the borrowing needs of Canada Mortgage and Housing Corporation, the Business Development Bank of Canada and Farm Credit Canada through direct lending.
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
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