Canada’s federal government ran a budget surplus in February for a second consecutive month on increased revenue from corporate income taxes and employment insurance premiums.
Canada recorded a surplus of C$1.48 billion ($1.51 billion) during the month, reversing a C$592 million deficit in February 2011, the department said in its monthly budget report from Ottawa today. The deficit in the first 11 months of the fiscal year, which begins April 1, narrowed to C$14.5 billion from C$28.3 billion.
Revenue rose 5.2 percent to C$22.6 billion in February from a year earlier, led by an 8.8 percent increase in corporate income taxes and a 6.8 percent rise in employment insurance premiums. The Canadian government raised employment insurance premium rates by 5 cents on Jan. 1. Revenue for the 11-month period was up 4.7 percent.
Program spending fell 3.6 percent in February and was down 1.9 percent over the first 11 months of the fiscal year.
To contact the reporter on this story: Theophilos in Ottawa at firstname.lastname@example.org
To contact the editors responsible for this story: Christopher Wellisz at email@example.com; David Scanlan at firstname.lastname@example.org.