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By Jason Fekete

OTTAWA — The federal government posted a deficit of $33.4-billion for the 2010-11 fiscal year — a 40% drop from the previous year and $2.8-billion less than the $36.2-billion shortfall forecast in the most recent budget.

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The updated numbers, released late Wednesday in the federal government’s annual financial report, reflect stronger revenues and larger-than-expected cuts for the budget year that ended last March.

The $33.4-billion shortfall was significantly lower than the $55.6-billion deficit in the 2009-10 fiscal year, and a stepping stone for the Harper government as it looks to return to surplus by 2014-15.

Federal officials estimate approximately half of the deficit was tied to infrastructure stimulus spending, tax reductions and other financial supports included in the government’s economic action plan.

Last year’s deficit further contributed to a public debt that now totals a whopping $550-billion.