Federal government runs $1.7B August deficit

[daleo]

The federal government ran a $1.7-billion deficit in August, leaving it with an overall surplus for April to August of $1.2 billion, the Finance Department said Friday.

In 2007, the government ran an August deficit of about $100 million, and posted a $6.6-billion accumulated surplus for the April-August period.

As the country has run into economic headwinds, speculation has increased that the government may wind up in a deficit position.

"I can assure you that we remain on track for a balanced budget this fiscal year, with a modest surplus by the end of the fiscal year," Finance Minister Jim Flaherty said Friday during a speech to the Niagara Falls Chamber of Commerce.

http://www.cbc.ca/canada/story/2008/10/24/federaldef.html
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A little math shows:

Surplus 2007 April to August $6.6 Billion
Surplus 2007 Sept to March $ 2.6 Billion
Surplus 2007: $9.2 Billion

Surplus 2008 April to August $1.2 Billion (-5.4 Billion less than last year)
Surplus 2007 Sept to March $ -2.8 Billion (assume a similar shortfall)
Surplus 2007: -$1.6 Billion (deficit)

That's a low estimate, as the shortfall in the second half of the year will certainly be much higher than in the first half, as the recession deepens. A more likely scenario is a $5B to $10B deficit for this year. Harper and Flahrety would have been aware of this during the election campaign.

[HeresyLives]

1. Twice this year so far.

It's getting closer.