Canada announces a surprise $1.9 billion surplus, the first since 2007

Dec 20 2017, 1:21 am

Despite hearing the word ‘deficit” tossed around endlessly during the current election campaign, Canada’s Department of Finance has unexpectedly posted a $1.9 billion surplus for the 2014 to 2015 fiscal year.

Just one year ago, the federal government’s budget was deep in the red with a $5.2 billion deficit and previous forecasts for this year’s budget suggested the trend would continue with another $2 billion deficit for the fiscal year ending March 31, 2015.

But stronger revenues helped to keep the books in the black with an increase of 3.9 per cent, totaling $282.3 billion. Spending slightly increased as well to a total of $280.4 billion, up $3.6 billion from the year before.

The federal debt to GDP ratio also remains low at 31.0, the lowest among the G-7 countries and less than half of the G-7 average.

The report, the Annual Financial Report of the Government of Canada, is good news for Stephen Harper’s re-election campaign and will likely provide much fodder for this week’s leader’s debate focused on the economy.

This is the first budget surplus to be reported since 2007.

DH Vancouver StaffDH Vancouver Staff

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