Canada Parliament and Canadian Flag over blue sky.

The federal government posted a budgetary deficit of $3.6 billion in the first eight months of the fiscal year.

In its monthly fiscal monitor, the finance department says the deficit compares to a deficit of $73.7 billion during the same period last year.

Government revenues were up $35.5 billion or 14.8% compared to the same period last year, largely due to improvement in economic growth and the fading effect of the Covid-19 pandemic.

At the same time, program expenses excluding net actuarial losses were down $40.4 billion, or 13.9%, largely due to Covid-19 measures expiring.

Public debt charges were up $6.1 billion or 36.8%, which the finance department attributes to rising interest rates and elevated inflation.

Net actuarial losses were down $0.3 billion, or 4.7%.