FISCAL YEAR STARTS IN THE BLACK FOR FEDS, BUT RED INK ON WAY

The federal government started the fiscal year with the tiniest of budgetary surpluses, though the black ink is expected to turn very red in the coming months. The Finance Department’s monthly fiscal monitor reports that the government posted a $68-million surplus for April and May, just less than last year’s total over the same period. The federal government’s fiscal year runs from April 1 to March 31. The surplus is not expected to last, however, as the Liberals have promised to run deep deficits over the coming years to finance major infrastructure work and more lucrative child benefits. The feds ended up running a $21.85-billion deficit last year, and have projected a $28.5-billion deficit this year.