Will Ottawa meet its fiscal target? Economists split as deficit tracks higher
OTTAWA — Finance Minister Chrystia Freeland has pledged that the government will meet its fiscal targets in the upcoming federal budget, but economists say achieving that goal will be challenging as the deficit tracks higher.
Amid mounting pressure to rein in spending, the Liberals unveiled new fiscal guardrails in the fall that aim to limit deficits. Among the government’s promises was that this year’s deficit will not exceed $40.1 billion.
In new reports previewing the federal budget, TD and Desjardins offer different takes on whether the government will meet its goal for current fiscal year.
TD says although the deficit appears to be tracking closer to $55 billion, it is projecting it will be capped at $40 billion.