Ottawa’s fiscal wiggle room squeezed by rising debt costs, watchdog says
Global News
The Liberal government is heading into its 2024 budget with higher debt costs and a slowing economy, a new report form the Parliamentary Budget Officer shows.
The Liberal government is facing a tough fiscal position heading into the 2024 budget, according to new projections from the Parliamentary Budget Officer.
Ottawa is simultaneously dealing with rising debt costs and a slowing economy, both of which are fuelled by decades-high interest rates from the Bank of Canada as it works to tame inflation.
The PBO said in a report released Tuesday that it expects the federal government’s deficit will come in at $46.8 billion for the current fiscal year, $6.8 billion more than Ottawa’s latest estimates in the fall economic statement.
That’s because of higher expenses — the PBO projects $8.1 billion in spending was announced between the FES and Feb. 1 — and lower revenues coming in from Canada’s cooling economy.
Statistics Canada said last week that the national economy eked out annualized real gross domestic product growth of around one per cent in the fourth quarter, skirting a technical recession.
But that slowing economy means less money to spend while higher debt obligations leave the Liberals less fiscal wiggle room ahead of the 2024 budget, which Deputy Prime Minister and Finance Minister Chrystia Freeland is set to table on April 16.
She teased that the forthcoming plan would try to speed up building homes, make life more affordable and create jobs for Canadians.
“This plan will unlock pathways to a good middle-class life for the next generation — because Canada is stronger when everyone has an equal chance to succeed. Together, we are going to unlock and build a brighter, more prosperous future,” she said in a statement.
King was a prominent figure in the demonstration that rolled into the national capital in 2022, which saw protesters entrench themselves in downtown Ottawa for three weeks.
Dermo, which has been detected in Canada for the first time, has spread from oyster to oyster in New Brunswick.
The latest draft negotiating text released Friday pledged $250 billion by 2035, less than a quarter of what developing countries requested.
The officials say Ottawa will be chipping in $108.5 million over the next three years to Ontario’s existing Student Nutrition Program and First Nations Student Nutrition Program.
A mother who was struck by a vehicle, along with the father and three other children, has now died from her injuries in hospital just over a month after the collision.
Erin McQueen believes her tools were stolen on Nov.16 while her truck was parked in Kelowna near Ellis Street and Clement Avenue.
"I am fighting for my daughter." How one Regina family is looking to the community to help raise money for a potentially live saving trip to the United States.
Kingston hosts the 59th Vanier Cup, featuring Laval vs. Laurier, promising excitement, economic impact, and family-friendly events. Full details on the big game.
Saskatchewan has been battling an increase in overdoses for many years. But based on recent data, Saskatchewan’s response to drug toxicity may be working.
A council representing Montreal and the suburban municipalities will vote on whether to stop the practice in the six West Island suburbs that treat their water with fluoride.
Trudeau said he would prefer the North American free trade agreement to remain in place, but that Ottawa was 'leaving all doors open' to secure Canadian interests.