Finance Department trims long-term deficit projections after year of growth

OTTAWA — The federal Finance Department has shaved several years of projected deficits from Canada’s long-term financial future following better-than-expected economic growth in 2017 — though many more years of deficits remain.

Finance officials predicted in a report released Friday that barring any policy changes, the federal government could be on track to run annual shortfalls until 2045-46, compared to projections last year that deficits would run to 2050-51.

If such a scenario played out, the deficit would reach an annual high of $24.8 billion around 2030-31 before beginning to fall.

By 2040-41, the federal debt would top out at around $1.08 trillion before starting to fall, as compared to last year’s prediction that it would reach $1.55 trillion by 2050-51.

The improvement is attributed to an overall boost in the fiscal outlook, particularly in the medium term, which comes after the Canadian economy mounted a surprise resurgence over the past 12 months.

While long-term predictions contain considerable uncertainty, Finance Minister Bill Morneau nonetheless said the projections prove the Liberal government’s plan is bearing fruit.

Just Posted

Wildfire that threatened Alberta communities was arson: RCMP, province

EDMONTON — A wildfire that threatened remote communities in north-central Alberta and… Continue reading

Fatal vehicle crash reported near Rimbey

Multiple vehicles involved

Ukraine’s president urges lawmakers to take polygraph test

KYIV, Ukraine — Ukraine’s president on Wednesday urged a group of lawmakers… Continue reading

Rogers Communications reports $593M third-quarter profit, cuts revenue guidance

TORONTO — Rogers Communications Inc. cut its financial guidance as it reported… Continue reading

Mock federal election for students also ends in Liberal minority

If Canada’s elementary and high school students were the ones responsible for… Continue reading

Your community calendar

Tuesday The Small Business Centre at Burman University’s School of Business invites… Continue reading

Very complex: Nats, Astros share spring site, meet in Series

WEST PALM BEACH, Fla. — Asked how his Washington Nationals figured out… Continue reading

Canada’s Milos Raonic loses to Korea’s Hyeon Chung in return from injury

VIENNA — Milos Raonic’s first tour match in more than two months… Continue reading

Loughlin, 10 other parents charged anew in college scandal

BOSTON — “Full House” actress Lori Loughlin, her fashion designer husband, Mossimo… Continue reading

Louvre exhibit acclaims Da Vinci, 500 years after his death

PARIS — Much about Leonardo Da Vinci remains an enigma: the smile… Continue reading

Trudeau must keep promise to support the West, Kenney and Moe say

Prime Minister Justin Trudeau’s promise to support the West should be more… Continue reading

Nationals get best of Gerrit Cole, beat Astros in World Series Game 1

Nationals 5 Astros 4 HOUSTON —The first game of any World Series… Continue reading

Carlson scores twice for Washington Capitals in 5-3 win over Calgary Flames

Capitals 5 Flames 3 CALGARY — Defenceman John Carlson’s two goals paced… Continue reading

Most Read