Ottawa: The parliamentary budget officer (PBO) reports that the federal government likely exceeded its promised deficit cap of $40 billion, estimating a $46.8 billion deficit for the 2023-24 fiscal year. Finance Minister Chrystia Freeland had pledged to keep the deficit below this cap and stated in her spring budget that it was in line with that promise. The final deficit figure will be confirmed in the government’s annual public accounts report this fall.
The PBO also notes that economic growth will be weak this year but is expected to rebound in 2025 due to interest rate cuts by the Bank of Canada, which should encourage spending and business investment.