Feds headed for $150B in deficits over next 5 years: TD forecast

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.

See Full Article

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.



Advertisements

Latest Economic News

  • Specialty sand market heats up as oil, gas drilling rebounds

    Economic CTV News
    CALGARY - Signs of the Canadian oil and gas industry's recovery from a punishing two-year downturn are emerging in unlikely places, including fine grains of sand. Demand for the especially round and crush-proof type of sand used to help extract shale oil and gas is climbing, as more drilling rigs get fired up and operators pump higher amounts of sand into wells, say industry watchers, who foresee a big jump in the year ahead. Source
  • U.S. shrugs off threat of AI on workforce as Canada frets

    Economic CTV News
    WASHINGTON - Should we be preparing for the coming invasion of job-stealing, career-crushing robots? It's a question that's moved from science-fiction novels to the tip of policy-makers' tongues.Scroll down or click here to vote in our poll of the day Canadian and American policy-makers have just delivered very different answers. Source
  • U.S. internet service providers get OK to sell user data, but what about Canada?

    Economic CBC News
    Privacy protections designed to prevent U.S. internet service providers from sharing or selling subscribers' personal information with third parties — without permission — were dismantled by U.S. Congress on Tuesday. It means that information about the apps American internet subscribers use, the websites they visit, and the things they purchase online — among other things — can potentially be tracked, shared, and monetized by third parties, unless those users opt out. Source
  • Marijuana producers lobby government ahead of legalization

    Economic CTV News
    TORONTO - Several licensed marijuana producers have penned a letter to Ottawa, urging the federal government to allow them to brand their products and provide medical cannabis on a tax-free basis. The seven producers - Tilray, Tweed, Mettrum, CannTrust, Green Organic Dutchman Holdings, RedeCan Pharm and Delta 9 Bio-Tech - are lobbying the government ahead of the week of April 10, when legislation legalizing recreational use of the drug is expected to be introduced. Source
  • Asian stocks lower after Wall Street falters

    Economic CTV News
    HONG KONG - Asian stocks are drifting lower on Thursday after a lacklustre performance on Wall Street. KEEPING SCORE: Tokyo's benchmark Nikkei 225 index dipped 0.3 per cent to 19,167.86 and South Korea's Kospi slipped 0.3 per cent to 2,161.05. Source
  • B.C. envoy says the window is open slightly for softwood lumber deal with U.S.

    Economic CTV News
    VICTORIA -- British Columbia's softwood trade envoy says there's a slight opportunity to quickly negotiate a new lumber agreement between Canada and the United States, but if a deal can't be reached by the summer or fall it could mean a lengthy fight. Source
  • Lululemon shares drop after weak outlook

    Economic CBC News
    Shares of Lululemon Athletica Inc. fell sharply in after-hours trading Wednesday after the athletic-inspired sportswear company delivered a weak outlook for the current quarter. The Vancouver-based company says it earned $136.1 million US, or 99 cents per share, for the three months that ended Jan. Source
  • Cenovus Energy buying most of ConocoPhillips's Canadian assets for $17.7B

    Economic CTV News
    CALGARY -- Cenovus Energy (TSX:CVE) announced Wednesday it will spend $17.7 billion to acquire most of the Canadian assets of ConocoPhillips, making the Houston-based company the latest international player to reduce its exposure to the oilsands. Source
  • Cenovus Energy buying most of ConocoPhillips' Canadian assets for $17.7B

    Economic CBC News
    Cenovus Energy of Calgary says it will spend $17.7 billion to acquire most of the Canadian assets of ConocoPhillips, making the Houston-based company the latest international player to exit the oilsands. Cenovus CEO Brian Ferguson is calling it a "transformational acquisition. Source
  • Canadian coal production hit three-decade low last year as demand wanes

    Economic CTV News
    CALGARY -- The National Energy Board says Canadian coal production dropped to a three-decade low last year as demand waned. Production came in at 60.4 million tonnes, a 12 per cent decline since 2013, and well off the peak of about 79 million tonnes reached in 1997, the NEB said Wednesday. Source