Reports in advance of Ottawa’s federal fiscal update suggest the deficit may reach $34 billion.
debt and deficits
Ontario’s cumulative deficit from 2009 to the end of last year was approximately $81.9 billion—50 per cent more than projected in 2009.
Growth of U.S. government spending and borrowing might crowd out private-sector investment in the U.S. from Canada.
Budget projects an increase in total federal debt of approximately $113 billion over the next five years.
The new federal Liberal government will table its first budget next week, with media reports suggesting a deficit triple the amount promised during the election campaign.
The TD forecast shows a persistent federal deficit of approximately $30 billion a year for the foreseeable future.
In Ontario, the projected operating deficit for 2015/16 is $7.5 billion but the change in net financial position is $13.7 billion—a difference of 83 per cent.
Prime Minister Trudeau recently mused that not only will the $10 billion deficit ceiling be broken, but the return to a balanced budget by 2019/20 is now in question.
Repeated studies have shown that the tax hike on upper-earners likely will not raise the planned amount of revenue.