Why Is the Federal Government’s Projected Deficit Higher Than Ancitipated?

The increased deficit figures released to Canadians in the Liberals’ mini-budget added to an eventful day in Ottawa on Dec. 16, as the government went over the guardrail set by the newly resigned finance minister.
The now former Deputy Prime Minister and Finance Minister Chrystia Freeland had pledged last year to keep Canada’s deficit just below $40.1 billion. The Dec. 16 statement said the deficit would have been approximately $40.8 billion if not for “significant unexpected expenses” related to indigenous contingent liabilities, which cost $16.4 billion, and allowances for COVID-19 pandemic supports totaling $4.7 billion.
The update also includes $1.3 billion over six years to bolster Canada-U.S. border security amid the threat of tariffs by incoming U.S. President Donald Trump….