Ottawa posts $3.2B deficit for October, including impact of income splitting

The federal government says it posted a deficit of $3.2 billion in October due in large part to its new income-splitting plan for families and the doubling of the children's fitness tax credit.

OTTAWA — The federal government says it posted a deficit of $3.2 billion in October due in large part to its new income-splitting plan for families and the doubling of the children’s fitness tax credit.

The result for the month compared with a deficit of $2.5 billion in October 2013.

The tax changes resulted in a $1.6-billion adjustment to revenue and, without that, Ottawa would have posted a deficit of $1.6 billion for October.

The Harper government announced in October it would go ahead with income-splitting plan for couples with children as well as higher child-care benefits.

The income splitting plan has been sharply criticized by the opposition who say the $2-billion-a-year program would only benefit about 15 per cent of Canadian households.

For the fiscal year to date, the government posted a deficit of $4 billion, compared with a deficit of $12.8 billion in the same period a year ago.

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