Canada running $28.1 billion surplus

OTTAWA, June 25 (UPI) -- Canada's economy ended the fiscal year in March with a $28.1 billion surplus, the Statistics Canada agency reported Wednesday.

"During the last five years, consolidated government revenues have grown at an annual average rate of 5.7 percent, compared with an annual average increase of 4.8 percent in expenditures," the agency report said.

Revenues increased 5.1 percent between 2007 and 2008, a slightly slower pace than the 5.5 percent growth in expenditures, but still managed to near the record surplus of $28.6 billion in 2001, StatsCan said.

Income taxes, consumption taxes and contributions to social insurance plans accounted for more than 71 percent of total revenues in 2008. The largest growth in revenue was from income taxes, which increased 7.5 percent in fiscal year 2008.

The fiscal year ending March 3 marked the fourth consecutive year of surplus for the combined provincial, territorial and local governments, although Ontario and Quebec continued to have deficits, the report said.