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Morneau Revisions Puts Canada on C$30 Billion Deficit Path

  • Three-year forecast C$26.9 billion worse than Nov. update
  • Minister paints fiscal picture ahead of March 22 budget
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Time Is Right for Deficit Spending in Canada: Doyle

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Finance Minister Bill Morneau released new forecasts suggesting Canada will run deficits in the vicinity of C$30 billion ($22 billion) this year, as the slump in crude prices takes a bigger bite out of the nation’s finances than previously thought.

A fiscal update Monday -- released a month before Morneau’s first budget is due -- showed Canada’s deficit in the year that begins April 1 is on pace to be C$18.4 billion, even before the bulk of Prime Minister Justin Trudeau’s C$11 billion in spending promises and any other stimulus measures are accounted for. A deficit of that magnitude -- totaling about 1.5 percent of output -- would be the largest since 2010.