Dec 17 (Reuters) - Canada recorded a much smaller budget deficit in the first seven months of the 2021/22 fiscal year compared to the same period a year ago, as the costs of the COVID-19 crisis continued to recede, the finance ministry said on Friday. The April to October shortfall was C$72.25 billion ($56.29 billion) compared with a C$216.62 billion deficit over the same seven months in 2020/21, the data showed. "As expected, the government"s 2021–22 financial results show a marked improvement compared to the peak of the COVID-19 crisis," the finance ministry said. "That said, they continue to reflect challenging economic conditions." April-October revenues grew by 35.6%, led by higher tax revenues and other revenues. Program expenses fell 25.7%, largely on lower emergency transfers to individuals and businesses. On a monthly basis, Canada posted a deficit of C$3.68 billion, compared to a C$18.51 billion deficit in October 2020. ($1 = 1.2836 Canadian dollars)