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Finance Minister Jim Flaherty speaks in the House of Commons in Nov. 24, 2011.Adrian Wyld

The Conservative government is running a $13.2-billion deficit at the halfway point of the current fiscal year, an improvement over the $17.4-billion deficit Ottawa ran from April to September a year earlier.

The improvement in Ottawa's bottom line is thanks to several factors. Revenue from personal income tax revenue is up 7.7 per cent during the first six months of the fiscal year and corporate tax revenues are up 8.4 per cent.

The government also appears to be having success at holding the line on program spending. Expenses for programs are down 0.4 per cent compared the same period last year.

The latest statistics come from Finance Canada's monthly Fiscal Monitor, which updates the money flowing in and out of the federal government. The report notes that the federal deficit for September was $2.5-billion, which is lower than the $3.9-billion deficit posted in September, 2010.

The six month deficit of $13.2-billion this year suggests Ottawa is currently on track to meet or beat its latest deficit target for the current year, provided economic growth remains constant. In his November fiscal update, Finance Minister Jim Flaherty revised his deficit projection slightly to $31-billion. The government's June, 2011, budget had forecasted a deficit of $32.3-billion this year.

Editor's Note: A previous version of this article incorrectly stated the deficit figure forecasted in the June, 2011, budget. This version has been corrected.

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