OTTAWA -- The days of the federal government routinely recording surpluses in the tens of billions appear to be over, a new finance department report on its fiscal position suggests. The department's fiscal monitor released Friday shows that revenue growth came to a sudden halt in January, shrinking the surplus for the month to a mere $600 million as the GST cut and personal income tax reductions announced last fall began eating away at Ottawa's tax haul. The finance department said revenues dropped $900 million, or 3.9 per cent, in January. Last year during the month, the budgetary surplus was $2.4 billion. For the first 10 months of the fiscal year that ends Monday, the accumulated surplus was $10 billion, down $600 million from the corresponding period last year.
The still fat surplus is despite the recent slowdown in the economy and after deducting the cost of the personal income tax cuts that were announced in last fall's economic update and made retroactive to the start of the 2007 tax year.
Surplus for January was 600 million even after tax cuts.
Raise the alarm we are going broke!!! :P
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