OTTAWA — The federal government posted a $3.9 billion deficit in the first two months of the fiscal year.

The result for the April-to-May period compared to a $1.5 billion surplus for the same stretch last year.

Revenues increased $6.5 billion, or 8.9 per cent, largely due to higher tax revenues.

The Finance Department says program expenses excluding net actuarial losses rose $10 billion, or 15.9 per cent.

Public debt charges increased $2.3 billion, or 33.8 per cent, due to higher interest rates.

Net actuarial losses fell $0.4 billion, or 23.2 per cent.

This report by The Canadian Press was first published July 26, 2024.

The Canadian Press