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The federal budget deficit shrank further in the first three months of the fiscal year, dropping to $1.98 billion from April to June compared to a $4.24 billon shortfall in the same period of last year, the Department of Finance said on Friday.
The monthly deficit in June fell to $1.15 billion from $2.26 billion in June 2011.
The finance department said the results for the first three months were broadly consistent with projections made in the March budget but added that "recent economic developments suggest that there are downside risks to the fiscal outlook".
It gave no further details. The Conservative government predicted in March that the budget deficit in 2012-13 would be $21.1 billion.
Revenues in April-June climbed by 4.7 percent on higher intake from income tax, excise tax and duties and employment insurance premiums. Program expenses increased by 1.8 percent on higher transfers to other levels of government.