Budget office predicts higher deficit this year, but sees slow decline coming
OTTAWA — The parliamentary budget overseer is predicting a budget deficit in the current fiscal year that’s almost $2 billion higher than was forecast in the government’s fall fiscal update last week.
The latest report from the parliamentary budget officer says the deficit this year will be $20.2 billion, while Finance Minister Bill Morneau’s last prediction was $18.4 billion.
Both numbers are well below the $25.5-billion deficit projection in last spring’s budget.
The budget office says it expects to see the federal deficit decline gradually, falling to $9.9 billion in 2022-23.