Close X
Friday, November 15, 2024
ADVT 
National

Federal Shortfalls On Track To Be $10.8 Billion Bigger Than Forecasts: Watchdog

Darpan News Desk The Canadian Press, 01 Dec, 2015 11:34 AM
    OTTAWA — Canada's budget watchdog says the federal government's medium-term deficits will likely be billions of dollars higher than what was predicted in "optimistic" Liberal forecasts.
     
    The government is on track to deliver annual shortfalls that will be as much as $10.8 billion higher than expected, the parliamentary budget office said Tuesday.
     
    In the near term, however, the budget office predicted the government to perform better than the projections in Finance Minister Bill Morneau's recent fiscal update.
     
    In fact, the budget office says Ottawa is currently headed for a $1.2-billion surplus this fiscal year — a $4.2-billion swing from the Liberals' $3-billion shortfall projection for 2015-16.
     
    The report underlined the biggest reasons for the contrasts between the two 2015-16 calculations as "other revenues" and "direct program expenses," which, combined, accounted for $3.9 billion of the difference. It noted the government had yet to release the detailed data for those categories.
     
    "For this reason, PBO cannot assess whether the government's outlook for the 2015-16 budgetary balance is pessimistic," said the report by parliamentary budget officer Jean-Denis Frechette.
     
    In April, the previous Conservative government projected a $2.4-billion surplus for 2015-16 — including the $1 billion set aside for contingencies.
     
    Some observers have said it could be in the Liberal government's interest to lower expectations and blame their Tory predecessors as a way to deflect future fiscal criticism.
     
    Frechette's report also included a 2016-17 deficit estimate that's $900 million smaller than Ottawa's forecast. 
     
    But for the fiscal years between 2017-18 and 2020-21, the budget office warned the federal books are on a trajectory to produce annual shortfalls of $2.3 billion, $3.6 billion, $6.3 billion and $10.8 billion higher than the Liberals' predictions.
     
    Frechette pointed to Ottawa's "more optimistic outlook" for revenues it expects to rake in from personal and corporate income taxes as well as the GST.
     
    "The government's status-quo outlook for the economy and federal budget over the medium term is optimistic," the report said. 
     
    "Based on forecast comparisons and forecast revisions, PBO believes that there is downside risk to the government's medium-term outlook."
     
    The fresh projections mean additional pressure on the Liberals to live up to their election vows to keep their expected annual deficits from climbing and to balance the books in four years. The Liberals pledged to boost federal infrastructure spending by billions of dollars as a way to fire up the economy and create jobs.
     
    Both the budget office and government numbers were crunched before factoring in the billions of dollars in election-campaign spending commitments by the Liberals.

    MORE National ARTICLES

    Calgary Company Unveils Groundbreaking Carbon Capture Project In Squamish, B.C.

    Calgary Company Unveils Groundbreaking Carbon Capture Project In Squamish, B.C.
    The pilot project will suck carbon dioxide from the atmosphere, not from an industrial plant like other such operations, with the goal of turning the gas into fuel.

    Calgary Company Unveils Groundbreaking Carbon Capture Project In Squamish, B.C.

    B.C. Introduces More Legislation To Improve Workplace Safety After Mill Fires

    B.C. Introduces More Legislation To Improve Workplace Safety After Mill Fires
    The ministry responsible for jobs and labour says Bill 35 will require employers to immediately report all fires and blasts that could seriously injure workers.

    B.C. Introduces More Legislation To Improve Workplace Safety After Mill Fires

    Mayor Hopes Public Memorial For Slain Father, Daughter Will Bring Some Closure

    Mayor Hopes Public Memorial For Slain Father, Daughter Will Bring Some Closure
    Terry Blanchette, 27, was found dead in his Blairmore home on Sept. 14, and a widespread Amber Alert was issued for two-year-old Hailey Dunbar-Blanchette, who had been abducted earlier that morning.

    Mayor Hopes Public Memorial For Slain Father, Daughter Will Bring Some Closure

    Car Crashes Into Surrey Bus Stop, Seriously Injuring Pedestrian, Driver Caught After Fleeing On Foot

    Car Crashes Into Surrey Bus Stop, Seriously Injuring Pedestrian, Driver Caught After Fleeing On Foot
    The victim was sitting on a bench at the bus stop when speeding car lost control, jumped the curb and slammed into the bus shelter 

    Car Crashes Into Surrey Bus Stop, Seriously Injuring Pedestrian, Driver Caught After Fleeing On Foot

    Government Has Tarnished Views Of Muslims, Says Zunera Ishaq, Woman At Heart Of Niqab Debate

    Government Has Tarnished Views Of Muslims, Says Zunera Ishaq, Woman At Heart Of Niqab Debate
    She attributed much of that misinformation to the Conservative government, accusing Prime Minister Stephen Harper of turning her personal choice into a national vote-getting strategy

    Government Has Tarnished Views Of Muslims, Says Zunera Ishaq, Woman At Heart Of Niqab Debate

    Victims Of Lac-Megantic Disaster Close To Receiving Part Of $450-million Fund

    Victims Of Lac-Megantic Disaster Close To Receiving Part Of $450-million Fund
    Jeff Orenstein, whose Consumer Law Group represents the victims of the derailment, said attorneys from all sides have agreed to recommend giving Canadian Pacific (TSX:CP) legal assurances in exchange for it dropping its appeal against the $450-million fund.

    Victims Of Lac-Megantic Disaster Close To Receiving Part Of $450-million Fund