- Category: Economic
- Published Tuesday, March 1, 2016
- CTV News
OTTAWA - An analysis by one of Canada's biggest banks says the federal government is on track to run $150 billion in budgetary deficits over the next five years.
The TD Bank report also estimates Ottawa's current fiscal path means it will take more than a decade to bring the budget back into balance -- unless the government raises taxes or cuts spending.
The bank says it produced the numbers after re-calculating Ottawa's predicted shortfalls to account for the Liberal government's electoral spending vows and TD's below-consensus outlook for economic growth.
The Liberals are projecting a shortfall of at least $18.4 billion next year -- a deficit that's widely expected to climb closer to $30 billion in the March 22 budget.
Ottawa's recent fiscal projection didn't factor in billions in Liberal spending commitments -- a sizable chunk of which is likely to fund infrastructure projects that will help boost the struggling economy.
The Liberals had vowed to cap upcoming deficits at $10 billion and to balance the books in four years -- a pledge they have been backing away from while citing the sliding economy.