One of Canada’s major banks predicts the government could run a deficit of $90 billion over the next four years of its mandate, reports Canadian Press. The current Liberal government was elected in October 2015 on a promise to fund infrastructure projects to boost the economy. During the election campaign, the Liberals promised to keep annual deficits below $10 billion.
Since then, the steep decline in the price of oil along with dropping commodity prices have badly hurt Canada’s economy. The National Bank has issued a report saying fading economic prospects mean the annual deficits could be much higher. It adds the Liberal plan to balance the budget by the end of its mandate will be difficult to keep without tax hikes or spending cuts.
From Canadian Press