Canadian Minister for Finance, Jim Flaherty has released the Fiscal Monitor for April and May 2010, showing improved revenues on the corresponding period in 2009.

For the first two months of the 2010-11 fiscal year (April and May), there was a budgetary deficit of CAD4.4bn (USD4.25bn), compared to a deficit of CAD7.5bn reported in the same period last year. Flaherty said that close to CAD1.8bn of the CAD4.4bn deficit was attributable to actions taken under Canada’s Economic Action Plan. By month, there was a deficit of CAD2.4bn in April and a deficit of CAD2.0bn in May.

For the two months together, revenues increased by CAD2.4bn, or 7%. The government explained that this gain was as a result of higher goods and services tax revenues, personal income tax revenues and other revenues amid lower corporate and non-resident income tax revenues. In addition, the government said program expenses were down CAD0.5bn, or 1.4%, mainly reflecting lower transfer payments.