The federal government posted a $6.5 billion deficit in the first two months of the fiscal year.
The result for the April-to-May period compared with a $3.8 billion deficit for the same stretch last year.
Revenues increased $26 million, virtually unchanged from the prior year, as increases in customs import duties and pollution pricing proceeds to be returned to Canadians were largely offset by a decrease in revenues from corporate income and goods and services taxes.
The Finance Department says program expenses excluding net actuarial losses rose $2.9 billion, or four per cent.
Public debt charges increased $400 million, or 3.8%, due to an increase in the stock of marketable bonds and higher consumer price index adjustments on real return bonds.
Net actuarial losses fell $600 million, or 46.8%.