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Canada's monthly budget deficit fell in July from a year earlier when the government spent billions to support the struggling auto industry during the recession.
The deficit totaled $473 million in July, down from $5.8 billion in July 2009 as expenses declined and revenues increased, the Department of Finance said on Friday in its monthly fiscal monitor report.
In the first four months of the fiscal year, April-July, the budget shortfall shrank to $7.70 billion from $18.33 billion a year earlier.
The federal government slid into deficit after a decade of surpluses partly because of stimulus spending aimed at softening the impact of the global recession.
Preliminary estimates for the 2009-10 fiscal year showed a deficit of $47 billion, but final numbers could be higher and the finance minister recently said the annual deficit would top $50 billion.