The federal budget deficit in July rose to $1.6 billion, compared with $0.5 billion in the same month a year earlier, the Finance Department reported Friday.
So far this fiscal year, spending has surpassed revenue by $7.1 billion, compared with $7.7 billion in the first four fiscal months of 2010.
“Revenues and expenditures are in line with expectations made at the time of the June budget,” Sonya Gulati, an economist with TD Bank said in a commentary. "The federal government appears to be on track to meet its $33.2-billion deficit projection for the current fiscal year.”
Many economists have lowered their predictions for Canadian growth this year, said Gulati, but Ottawa’s lower budget estimate for economic growth than the markets had earlier predicted “gives the fiscal plan a bit of breathing room,” she said.