Prime Minister Justin Trudeau sits beside Deputy Prime Minister Chrystia Freeland before speaking to members of caucus on Parliament Hill in Ottawa, Thursday, January 23, 2020. Parliament’s spending watchdog says the federal response to the COVID-19 pandemic should send the deficit to $363.4 billion. THE CANADIAN PRESS/Adrian Wyld

Prime Minister Justin Trudeau sits beside Deputy Prime Minister Chrystia Freeland before speaking to members of caucus on Parliament Hill in Ottawa, Thursday, January 23, 2020. Parliament’s spending watchdog says the federal response to the COVID-19 pandemic should send the deficit to $363.4 billion. THE CANADIAN PRESS/Adrian Wyld

PBO sees $363 billion deficit, warns of pitfalls from Liberals’ promised stimulus

With the economy doing better than expected, and the deficit falling over time

Parliament’s spending watchdog says the federal response to the COVID-19 pandemic should send the deficit to $363.4 billion.

In a report this morning, budget officer Yves Giroux says the deficit should fall over time as emergency spending measures wind down over the next 12 months.

The economy too is faring better than Giroux anticipated, and his office has revised its projections for economic growth starting in the second half of this year.

With the economy doing better than expected, and the deficit falling over time, the budget office expects federal finances to become sustainable again.

The economy could also get a boost from the Liberals’ promised fiscal stimulus that is valued between $70 billion and $100 billion over three years to be outlined in this year’s federal budget.

Giroux’s outlook doesn’t account for that spending because of the lack of detail about how it will be used, but he does warn it would result in larger deficits that may spin out of control depending on how the spending is financed.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Interior Health nurses administer Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16. (Phil McLachlan/Kelowna Capital News)
69 new cases of COVID-19 in Interior Health

The total number of cases in the region is now at 9,840 since the pandemic began

Kelowna General Hospital (File photo)
Interior Health hospitals not strained by rising COVID case counts

While provincial hospitalizations rise, health care systems in the B.C. Interior remain robust, say officials

An Interior Health nurse administers Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16, 2021. (Phil McLachlan/Kelowna Capital News)
105 new COVID-19 cases in Interior Health

Just over 8,000 new vaccine doses administered in the region for a total of 158,000 to date

The show Altered Perspectives, the artwork of Tim Francis, is on now at The Vic at 4th and Victoria, downtown Kamloops through May 1.
Altered Perspectives: Tim Francis’ one man art show in Kamloops

The show Altered Perspectives, the artwork of Tim Francis, is on now… Continue reading

Carlos Sigurnjak was found near where his blue hatchback was found. (Facebook photo)
Missing man found after two days

A man from Kelowna who went missing the afternoon of April 6… Continue reading

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
Top doctor warns B.C.’s daily cases could reach 3,000 as COVID hospitalizations surge

There are more than 400 people in hospital, with 125 of them in ICU

B.C. Premier John Horgan wears a protective face mask to help prevent the spread of COVID-19. THE CANADIAN PRESS/Jonathan Hayward
B.C. Premier John Horgan booked to get AstraZeneca shot Friday

‘Let’s show all British Columbians that the best vaccine is the one that’s available to you now,’ he said

Doses of the Moderna COVID‑19 vaccine in a freezer trailer, to be transported to Canada during the COVID-19 pandemic. THE CANADIAN PRESS/Nathan Denette
Canada’s incoming supply of Moderna vaccine slashed in half through end of April

Moderna plans to ship 650,000 doses of its vaccine to Canada by the end of the month, instead of the expected 1.2 million

Dr. Bonnie Henry speaks about the province’s COVID-19 vaccine plans during a news conference at the legislature in Victoria. THE CANADIAN PRESS/Chad Hipolito
P.1 variant likely highest in B.C. due to more testing for it: Dr. Henry

Overall, just under 60% of new daily cases in the province involve variants

The father of Aaliyah Rosa planted a tree and laid a plaque in her memory in 2018. (Langley Advance Times files)
Final witness will extend Langley child murder trial into May or June

Lengthy trial began last autumn with COVID and other factors forcing it to take longer than expected

A crossing guard stops traffic as students wearing face masks to curb the spread of COVID-19 arrive at Ecole Woodward Hill Elementary School, in Surrey, B.C., on Tuesday, February 23, 2021. A number of schools in the Fraser Health region, including Woodward Hill, have reported cases of the B.1.7.7 COVID-19 variant first detected in the U.K. THE CANADIAN PRESS/Darryl Dyck
COVID-infected students in Lower Mainland schools transmitting to 1 to 2 others: data

Eight to 13 per cent of COVID cases among students in the Lower Mainland were acquired in schools, B.C. says

Norm Scott, president of Royal Canadian Legion Branch # 91, is disappointed the Legion does not qualify for COVID financial assistance from the provincial government. (Black Press Media file photo)
B.C.’s pandemic aid package passing Legion branches by

Federal non-profit status stymies provincial assistance eligibility

Latest modelling by public health shows cases generated by COVID-19 infections into places where it can spread quickly. (B.C. Centre for Disease Control)
Industrial sites, pubs, restaurants driving COVID-19 spread in B.C.

Infection risk higher in offices, retail, warehouses, farms

Vancouver Canucks forward J.T. Miller said it would be “very challenging and not very safe” for him and his teammates to play as scheduled on Friday. THE CANADIAN PRESS/Darryl Dyck
Canucks’ return to ice postponed again after players voice COVID health concerns

Friday’s game against the Edmonton Oilers was called off after the team met virtually with the NHLPA

Most Read