The federal government says its budget shortfall in August was $3.2 billion, slightly bigger than the $3.1 billion deficit during the same month a year ago. But the federal government remains ahead of last year's deficit reduction efforts.
For the first five months of the current financial year, the shortfall was $6.2 billion.
A year earlier, the deficit stood at $9 billion. Ottawa says its revenues this year have increased by $3.4 billion, while program expenses are only up $1.4 billion. As well, interest charges to service the national debt are down about $900 mil-lion, or 6.7 per cent.
