Canada Posts Narrower Budget Surplus in February

For the second straight month, Canada recorded a budget surplus in February--although the windfall narrowed from the same month a year ago as revenue fell on lower receipts from personal and payroll taxes.

Canada posted a February budget surplus of 1.29 billion Canadian dollars ($949 million), compared with a C$3.21 billion surplus a year earlier, the Finance Department's monthly fiscal monitor publication indicated.

With just one month of results left in the 2016-17 fiscal year, Canada has a budget deficit of C$11.46 billion. The Canadian government anticipates a C$23 billion budget shortfall for the fiscal year just ended on March 31, or 1.1% of the country's gross domestic product.

According the Finance Department figures, total revenue fell 1.4% to C$26.27 billion in February compared to the same month a year ago, with declines recorded in receipts associated with personal-income tax, the country's national value-added tax, and payroll levies.

Spending on government programs advanced 7% to C$23.28 billion versus the same year-ago month, reflecting an increase in benefits to the elderly, the jobless, and households with young children. Public-debt charges rose 1% to C$1.70 billion.

Write to Paul Vieira at

(END) Dow Jones Newswires

April 28, 2017 11:14 ET (15:14 GMT)