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OTTAWA — The federal government ran a budgetary deficit of $1.5 billion in October as increases in spending on programs outpaced increases in tax revenues.

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tap here to see other videos from our team. Try refreshing your browser, or Ottawa is now $9.3 billion in the red; that's compared to a $600 million surplus last year Back to video

Canada’s gross domestic product shrank unexpectedly in October as factories suffered their worst month in almost three years, adding to signs the country’s outlook is worsening.





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The Finance Department’s monthly fiscal monitor also says the federal government has a deficit of $9.3 billion since the 2016-17 fiscal year started in April.

That figure for the April-to-October period is a swing from the $600 million surplus the Finance Department reported during the same stretch in the 2015-16 fiscal year.

The monthly check on government spending shows that revenues rose by 11.3 per cent, or $2.5 billion, compared to the same time last year, with more money coming in from personal income, corporate and excise taxes.