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

  • Swoop Airlines set to launch, heating up competition for low-cost travellers

    Economic CTV News
    MONTREAL - Competition is heating up for Canada's most price-sensitive travellers as WestJet Airlines gears up to launch the country's second ultra-low cost airline Wednesday. Swoop, an offshoot of WestJet Airlines, will make its maiden flight on its pink and white aircraft before the sun rises in Hamilton, Ont. Source
  • Auto tariffs could cost Canada 160,000 jobs, TD estimates

    Economic CBC News
    Donald Trump's threat to slap tariffs on Canadian cars and car parts could cost the country up to 160,000 jobs, especially if Canada retaliates, TD Bank warns. In a report Monday, senior economist Brian DePratto crunched some numbers on the economic impact of a 10 per cent tariff on car parts, and a stiffer 25 per cent levy on fully assembled vehicles. Source
  • Asian markets drop over Trump tariff threats

    Economic CTV News
    BEIJING - Asian stocks tumbled Tuesday after U.S. President Donald Trump escalated a dispute with Beijing over technology policy by threatening a tariff hike on additional Chinese goods. KEEPING SCORE: The Shanghai Composite Index fell 3.7 per cent to 2,914.05 and Hong Kong's Hang Seng dropped 2.7 per cent to 29,500.22. Source
  • Canada can end dairy trade dispute with U.S. by ending pricing irritant: Saputo

    Economic CTV News
    MONTREAL -- Canada can preserve its dairy supply management system and resolve its trade dispute with the United States over dairy subsidies by ending its domestic milk ingredient pricing system, the head of Canada's largest dairy processor said Monday. Source
  • Company appeals Churchill rail ruling in year-long attempt to restore service

    Economic CTV News
    WINNIPEG -- The company that owns a broken rail line into Churchill, Man., says it is appealing a federal regulatory ruling that requires it to repair the track. Hudson Bay Railway Co. was ordered last week by the Canadian Transportation Agency to immediately begin repairs to the track, which is the only land link to the subarctic community of 900 people. Source
  • Quarter of seafood sold in Metro Vancouver is mislabelled: researchers

    Economic CTV News
    VANCOUVER -- A new study shows that up to a quarter of the seafood sold in Metro Vancouver is mislabelled, with tilapia masquerading as snapper and catfish passing as cod. Researchers at the University of British Columbia collected 281 samples of fish and other seafood from restaurants and grocery stores, then tested the DNA to determine the true species. Source
  • Saputo urges end to milk ingredients pricing system opposed by U.S.

    Economic CBC News
    Saputo Inc., one of Canada's largest dairy companies, wants to end a domestic milk ingredient pricing system that has angered the United States, chief executive Lino Saputo Jr. said on Monday, showing a rare crack in solidarity among processors and the country's sheltered dairy farmers. Source
  • Proposed class-action lawsuits filed against Bank of Montreal, CIBC's Simplii

    Economic CTV News
    TORONTO -- Proposed class-action lawsuits have been filed against Bank of Montreal and CIBC's direct banking division Simplii Financial over recently disclosed cybersecurity breaches impacting up to 90,000 customers. Law firms Siskinds LLP and JSS Barristers say they have filed the proposed class actions against the two Canadian banks in the Ontario Superior Court of Justice, alleging the institutions failed to establish robust security measures to protect clients' sensitive information. Source
  • South Korea joins Japan in halting Canadian wheat imports after GMO plants found

    Economic CTV News
    CALGARY -- South Korea has joined Japan in suspending trade in Canadian wheat following the discovery of genetically modified plants in southern Alberta. Global Affairs spokesman Jesse Wilson says it's standard protocol in both countries to temporarily close markets in such cases. Source
  • Volvo sets goal of 25% recycled plastics in cars from 2025

    Economic CBC News
    At least 25 per cent of the plastics used in new Volvo car models from 2025 will be from recycled materials, the Chinese-owned company said on Monday in an anti-pollution plan praised by the United Nations. Source