The Finance Department says the federal deficit was $2.9 billion over the first three months of the fiscal year.
The result compared with a $3.6-billion surplus for the same period a year earlier
Program expenses excluding net actuarial losses for the April-to-June period totalled $107.5 billion, up from $93.8 billion for the same period a year ago.
Meanwhile, revenue amounted to $120.4 billion, up from $110.6 billion a year earlier, largely reflecting higher tax revenue.
Public debt charges totalled $13.9 billion, up from $10.7 billion a year ago, due to higher interest rates.
Net actuarial losses amounted to $1.9 billion, down from a loss of $2.5 billion a year ago.