Oil Rout Puts Canada in C$3 Billion Hole as Trudeau Steps Up
- Morneau's update paints grimmer picture than Liberal platform
- Outlook suggests planned spending will lead to deeper deficits
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Canadian Finance Minister Bill Morneau released forecasts showing he’s inherited a much worse fiscal outlook than expected as the country’s finances take a big hit from the oil price slump.
A fiscal update released by the finance department showed Canada on pace for red ink even before newly elected Prime Minister Justin Trudeau kicks off his plan for deficit spending. The latest projections are for a C$3 billion ($2.3 billion) deficit in the fiscal year that began in March, compared with a C$1.4 billion surplus budgeted by former Finance Minister Joe Oliver.