For the first three months of its fiscal year, Ottawa posted a deficit of $5.5 billion compared with a deficit of $7.2 billion in the April-to-June period a year earlier.
The government says the results were "broadly consistent" with its 2011 budget plan.
For the month of June, revenue increased to $19.44 billion, up from $17.89 billion a year ago, as the government's take from both personal and corporate income taxes grew.
Personal income tax revenues for were up 7.5 per cent from a year ago, while corporate income tax revenues were up 8.2 per cent.
Program spending grew to $19.03 billion from $18.11 billion, while public debt charges grew to $2.61 billion, up from $2.58 billion.