Ottawa-Parliamentary Expenditure Observers say the federal government’s response to the COVID-19 pandemic should send a deficit to $ 363.4 billion.
In a report this morning, budgetary officer Eve Giroud said the deficit should diminish over time as emergency spending measures end in the next 12 months.
The economy is also well above Giroux’s expectations, and his office has revised its economic growth forecasts later this year.
With the economy stronger than expected and the deficit shrinking over time, the Office of Management expects federal finances to become sustainable again.
The economy could also be boosted by the Liberal Party’s promised fiscal stimulus package, which is valued between $ 70 billion and $ 100 billion over three years, as outlined in this year’s federal budget.
Giroux’s outlook doesn’t take into account its spending due to the lack of details about how it’s used, but it can get out of control depending on how the spending is funded. I warn you that it will be in the red.