The parliamentary budget officer is forecasting the federal government failed to keep the deficit capped at $40 billion, while weak economic growth is projected to rebound next year. Parliament Hill is shown in Ottawa on Monday, Oct. 7, 2024.Photo by Sean Kilpatrick/The Canadian Press

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

Finance Minister Chrystia Freeland's new fiscal guardrail was part of an effort to quell fears that high government spending would fuel inflation

by · National Post

OTTAWA — The federal government likely failed to keep its deficit below the promised $40-billion cap in the last fiscal year, the parliamentary budget officer said on Thursday.

The budget watchdog estimates in its latest economic and fiscal outlook that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

Federal deficit soars to $50.9 billion for 2023-24 fiscal yearThe federal government ended the 2023-24 fiscal year with a deficit of $50.9 billion.31 May 2024Expect $7B higher federal deficit, slower growth for Canadian economy: PBO reportOTTAWA — A year of sluggish growth and a significantly bigger deficit from Ottawa are latest projections from the parliamentary budget officer.Ryan Tumilty, 05 Mar 2024