The Minority Liberals are projecting a big bump in the nation’s deficit, far greater than projected in the spring.
Finance Minister Bill Morneau unveiled the Fall Economic Update on Monday morning, which details how the projected deficit is slated to be $26,6 billion by the end of the federal fiscal year in March. In the Spring, Morneau said it would only reach $19.8 billion.
Minister Morneau says the increase in the deficit is mostly driven by changes to how employee pensions and benefits are calculated, along with a tax break taking effect January 1st.
Despite a rising deficit, the update remained mostly optimistic, pointing to low unemployment, growing wages, and solid profits. Morneau says it is expected Canada’s economy will be among the best performers in the G7 by the end of next year.
Very little new spending is outlined in this fiscal update; about $10 billion in new money, half of which will go towards a new employee pension payment plan.