09:23 AM EST, 03/04/2025 (MT Newswires) -- Last Friday's monthly budget report from Canada was a small positive, said Bank of Montreal (BMO).

Finance reported a modest surplus in December of C$1.0 billion, which clipped the 12-month cumulative balance to a $49 billion deficit, noted the bank

That's actually the smallest gap on that measure in more than a year, and leaves it on track to hit the latest estimate of a C$48 billion shortfall for FY24/25 ending this month, stated BMO.

Over the past 12 months, the Canadian federal government has run a small operational surplus -- revenues are a bit above program spending, pointed out the bank.

Unfortunately, interest charges have vaulted above C$50 billion, up roughly C$30 billion from pre-pandemic levels, added BMO.