The federal government posted a deficit of $12.7 billion for June compared with a deficit of $33.6 billion in June 2020.
The drop in the deficit came as spending dropped compared with a year ago when Ottawa spent billions on emergency aid due to the pandemic and revenue improved.
Program spending, excluding net actuarial losses, totalled $39.1 billion in June, down from $51.3 billion a year earlier.
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Revenue increased to $29.6 billion for the month, up from $19.9 billion in June last year.
Public debt charges increased to $1.9 billion from nearly $1.3 billion.
The federal deficit for the April to June period of the 2021-22 fiscal year totalled $36.5 billion compared with a deficit of $120.4 billion for the same period a year earlier.