PBO says Budget Deficit to be Billions More than Liberal Forecasts

The Parliamentary Budget Officer says the federal government’s medium-term deficits will likely be billions of dollars higher than what was predicted in “optimistic” Liberal forecasts.

The PBO says the government is on track to deliver annual shortfalls that will be as much as $10.8 billion higher than expected. In the near term, however, the budget office predicts the government will perform better than the projections in Finance Minister Bill Morneau’s recent fiscal update. The predict the government is currently headed for a $1.2-billion surplus this fiscal year; a $4.2-billion swing from the Liberals’ $3-billion shortfall projection for 2015-16.

The PBO’s forecast suggests it may be more difficult for the government to balance the budget in four years as they promised in the last federal election campaign.

To read the PBO’s latest report click here.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s