Canada's budget deficit narrows in April-June

Higher tax revenues helped Canada cut its budget deficit in the first three months of the year to $5.49 billion from $7.23 billion a year earlier, the Finance Department said Friday.

The ministry said that although economic growth had slowed recently, the results for the first three months of the 2011-12 fiscal year were broadly consistent with those projected in the June 6 budget.

The Conservative government, which has pledged to balance the books by 2014-15, forecast that the 2011-12 budget deficit would be $32.3 billion.

The Finance Department said on Friday that revenues from April to June were up $2.6 billion, or 4.8 percent, which primarily reflected higher income tax revenues. Spending was up $200 million, or 0.4 percent.

In June the budget deficit was $2.19 billion compared with a shortfall of $2.80 billion in June 2010.