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Canada's federal government budget deficit dropped in the first four months of the fiscal year, falling to $3.03 billion from April to July compared to a $5.93-billion shortfall in the same period of last year, the Department of Finance said on Friday.
The monthly deficit in July fell to $1.05 billion from $1.69 billion in July 2011.
Revenues in the first four months of the fiscal year were up by 3.7 percent compared with the same period in 2011, reflecting higher income tax revenues, excise taxes and duties, the finance department said. Program expenses rose by 1.2 percent, mainly due to higher transfer payments.
July revenues grew by 0.8 percent from July 2011 while program expenses fell by 0.4 percent.