0911 ET - The federal government deficit in Canada widened in the last quarter with a rise in expenses. Statistics Canada data show the general government surplus across the country grew C$2.3 billion on-year to C$10.5 billion in 2Q, excluding social security funds, representing 1.2% of nominal GDP. Yet the federal deficit expanded C$1.1 billion to C$4.1 billion, or 0.5% of GDP. Federal government revenue rose 5.6%, driven by an increase in taxes on income, profits and capital gains, but that was outpaced by a 6.3% rise in total expenses that was led by social benefits thanks to payments under Ottawa's Groceries and Essentials Benefit. Federal government net debt increased by 5.7% on-year to hit C$1.05 trillion as liabilities rose largely due to an increase in debt securities.