The federal government posted a budgetary surplus of $1.5 billion in April and May, the first two months of the 2023-24 fiscal year.
In its monthly fiscal monitor, the Finance Department says the result compared to a surplus of $5.3 billion during the same period in the previous fiscal year.
Revenues rose by $1.3 billion or 1.8 percent due to higher interest and employment insurance premiums, on top of greater proceeds from personal income tax and a carbon pricing hike.
Expenses rose $3.9 billion or 6.6 percent as the government paid out more returns under the pollution pricing framework as well as higher elderly benefits and transfers to other levels of government—all partly offset by the wind-down of COVID-19 income supports.
Higher interest rates have pushed up public debt charges by $1.3 billion or 22.8 percent since the year before.
Meanwhile, net actuarial losses decreased by $100 million or 4.7 percent.
