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.