Canada Budget Deficit Narrows in October to C$1.49 Billion

By Paul Vieira

OTTAWA-Canada's budget deficit narrowed in October from the year-ago period, on a solid jump in tax receipts and a muted increase in government spending.

Canada's finance department said Friday the government ran a budget deficit in October of 1.49 billion Canadian dollars, or the equivalent of $1.03 billion, versus a C$6.69 billion shortfall in the same month a year ago. For the first seven months of the current 2024-25 fiscal year, the budget deficit also narrowed, to C$14.50 billion, from a comparable C$15.13 billion level.

The finance department said total revenue rose 18% in October from a year ago, powered by a 63% increase in corporate-income taxes and a 13% advance in payroll levies.

Expenses related to transfers to households, other levels of government and public-sector administration rose 2.62%, Canada's treasury said. Public-debt charges also increased by a mild 2.4%.

The government's fall economic statement, issued Monday, showed wider-than-expected deficits up until 2028-29, or C$45 billion deeper than projected in the 2024 annual budget plan.

Write to Paul Vieira at paul.vieira@wsj.com