Statistics Canada reported today that the consolidated surplus for all Canadian governments, including the Canada and Quebec pension plans, hit $26 billion during the fiscal year 2005-2006, the second highest level during the last 20 years.

The surplus is $12.3 billion more than the previous year and is second only to the $28.6 billion in surpluses recorded in 2000-2001.

Governments collected $572.9 billion and spent $546.9 billion.

Their combined revenues rose 6.3%, while spending only went up 4.1%.

The report says half the increase in revenues came from a $17.2 billion increase in personal and corporate income taxes.

Government investment income rose 13.5%.