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Ottawa posts $6.7-billion deficit in March, remains ahead of pace for year

A Canadian flag flies on under the Peace Tower in Ottawa on March 3, 2010. Ottawa says it posted a $6.7-billion deficit in March 2014, the first monthly shortfall after three consecutive surpluses.

ADRIAN WYLD/THE CANADIAN PRESS

Ottawa says it posted a $6.7-billion deficit in March, the first monthly shortfall after three consecutive surpluses.

The end of the fiscal year setback was expected as last year March's deficit was even worse at $8.0-billion.

But for the year as a whole that ended March 31, the federal government remains on pace to beat its budget target of a $16.6-billion shortfall.

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Before the usual final accounting adjustments, the accumulated deficit for the 2013-14 fiscal year currently sits at $12.1-billion, which puts the federal government more than $4-billion ahead of pace of its projections.

The Department of Finance says revenue increases of 5.2 per cent – $13.2-billion over last year – were the main reason for the improved balance position.

Program expenses also rose, but at a more moderate 2.8 per cent pace, or $6.8-billion more than last year.

Public debt charges were down about $176-million.

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