Canada swings to deficit in November with expenses up, revenue down

OTTAWA (Reuters) – The Canadian government swung to a budgetary deficit in November compared to the year before as revenue decreased and program expenses increased due to a new benefit for families, the Finance Department said on Friday.

Canada posted a shortfall of C$3.32 billion ($2.53 billion) in November, compared to a surplus of C$392 million in November 2015.

For the fiscal year that began in April, the government saw a deficit of C$12.66 billion, compared to a surplus of C$1.03 billion in the same time period the year before.

Revenue was down 7.2 percent in November from a year ago as income from both personal and corporate income tax declined.

Program expenses, on the other hand, rose 9.3 percent, driven by a jump in children’s benefits after the Liberal government began sending out checks to families last July. Benefits to the elderly also increased, though unemployment benefits…

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