MNI:Canada Apr-Jan Budget Deficit Widens On Spending, Interest

Canada's budget deficit widened between the start of the fiscal year in April and January on higher program spending and interest charges, the finance department said Friday.

The shortfall was CAD26.8 billion compared with the prior CAD25.7 billion. Both revenue and program spending climbed 11%, and debt servicing costs by 16% or CAD6.3 billion. 

The monthly deficit for January widened to CAD5.1 billion from CAD2.1 billion a year ago. 

Prime Minister Mark Carney while campaigning ahead of an election April 28 has pledged to balance the operating budget within a few years by trimming program spending, saying modest deficits will continue to fund infrastructure projects. Canada hasn't run a substantial budget surplus since 2008, though deficits around 1% of GDP are modest compared with the U.S.