Ottawa is unlikely to meet its pledge to cap its deficit at or below $40 billion in the previous fiscal year, as recent estimates by the Parliamentary Budget Officer (PBO) indicate that the federal government falls short of its target by 17 percent.
In its Economic and Fiscal Outlook report published Oct. 17, the PBO estimated the budgetary deficit at $46.8 billion in fiscal year 2023–24—1.6 percent of Canada’s GDP—and expected the federal debt-to GDP ratio to be 42.2 percent that year.
In presenting the fall economic statement last November, Finance Minister Chrystia Freeland pledged new measures to keep federal deficits in check, saying Ottawa aimed to cap the 2023–24 amount at or below the spring budget projection of $40.1 billion, or 1.4 percent of GDP. The Finance Department reiterated in the spring budget released in April that the government was on track to fulfill its promise….