By Ketki Saxena
Investing.com -- The Canadian federal government posted a budget surplus of $1.5 billion for the months of April may, compared to a surplus of $5.3 billion this time last year, as per monthly fiscal monitor reports from the Finance Department.
Revenues experienced an upward trend with a rise of $1.3 billion or 1.8%, largely driven by elevated interest rates and employment insurance premiums, alongside amplified income from personal taxes and higher carbon pricing proceeds.
Expenses escalated to $3.9 billion or 6.6%. The surge can be attributed to more payouts under pollution pricing framework, augmented elderly benefits, along with transfers made to various levels of government; all partially balanced out by discontinuation of COVID-19 income support schemes.
In light of soaring interest rates that led to public debt charges increasing by $1.3 billion or 22.8% compared with last year’s figures, it's worth noting that net actuarial losses saw a reduction by around $100 million (4.7%).