OTTAWA — The federal government posted a small deficit in its latest fiscal year, in line with projections in its spring budget as personal and corporate income tax revenue fell in March. The $2-billion deficit for fiscal 2015-16, based on preliminary estimates from the Finance Department, comes before any year-end adjustments as well as a $3.7-billion commitment to benefits for veterans.

Finance Minister Bill Morneau. The Finance Department estimates a $2-billion deficit for the fiscal year that just ended. (Canadian Press photo) The spring budget had projected a $5.4 billion deficit for the year. Final results are expected to be released in the fall, but the Finance Department said the outcome was "broadly in line" with what was projected in the budget. Partisan debate The figures come amid an ongoing debate in Ottawa about whether the Conservatives left the Liberals with a deficit after the election last fall. The Conservatives have said the government was on track for a small surplus in fiscal 2015-16, which ended in March, while the Liberals have argued that they inherited a deficit.