#Parliamentary Budget Officer; #SlowEconomy&DeeperFederalBudgetPredicted
Ottawa, Nov 14 (Canadian-Media): A warning was issued by the Parliamentary Budget Officer (PBO), which provides independent, authoritative and non-partisan financial and economic analysis, waned rougher economy and a deeper federal deficit, with no certainty on how much deeper, media reports said.
PBO predicted the economic slowing because of an ongoing trade dispute between the world's two biggest economies — the United States and China — and increasing protectionism around the world.
This will deepen the annual deficit by $1.6 billion creating a deficit of $21.1 billion when the current fiscal year wraps up in March 2020, and $23.3 billion in the ensuing 12-month period. The office expects the deficit will shrink to $11.1 billion in 2024-2025.
The worsened shortfall is the result, the budget office says, of lower tax revenues and higher operating expenses for the federal government than had been expected with the unlikelihood of the budget being balanced by the 2024-2025 fiscal year.
The PBO report suggests warns that any new spending or changes in tax revenues could mean the ratio doesn't decline as the government hopes. It also notes that the government hasn't set any date for when it hopes to get back to balance.
The party's 2019 platform forecast a deficit next fiscal year of almost $27.4 billion and $23.7 billion the year after, relying on the PBO's forecasts from June.
The updated forecast wouldn't shift the Liberals' deficit projections too much in 2020-2021, but the PBO's new numbers would add $4 billion to the deficit the year after — making it closer to $27.3 billion.