OTTAWA, Nov 30 (Reuters) - Canada's federal budget deficit dropped in the first six months of the fiscal year, falling to C$8.9 billion ($9.0 billion) in April to September from a C$11.8 billion shortfall in the same period of last year, the Department of Finance said on Friday.

The monthly deficit in September fell slightly to C$2.69 billion from C$2.75 billion in September 2011.

Revenues in the first six months of the fiscal year were up by 2.8 percent, compared with the same period in 2011, reflecting higher income tax revenues, excise taxes and duties, the finance department said.

Program expenses rose by 1.4 percent, mainly due to higher transfer payments.

September revenues fell by 0.1 percent from September 2011 while program expenses increased by 0.6 percent. Public debt charges fell by 7.6 percent.

($1=$0.99 Canadian)

(Reporting by David Ljunggren; Editing by Peter Galloway) Keywords: CANADA BUDGET/

(david.ljunggren@thomsonreuters.com)(+1 613 235 6745)(fax +1 613 235 5890)(Reuters Messaging: david.ljunggren.reuters.com@reuters.net)

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