And the deficit for 2019-2020 will be $4 billion higher as well.
From now until 2020, the federal budget shortfall will exceed the projections made by the Trudeau government by many billions of dollars.
The combined deficit in the next two years will be a full $8 billion higher than the government had said.
That’s according to the Parliamentary Budget Officer.
As reported by the CP, “A new analysis by the parliamentary budget officer estimates Ottawa will post a $22.1-billion shortfall this fiscal year, which would be $4 billion more than the government’s projection of $18.1 billion in its February budget. For 2019-20, Jean-Denis Frechette’s team predicts a $21.4-billion deficit, $3.9 billion higher than the government’s forecast of $17.5 billion.”
A key part of the higher deficits are increased costs from servicing the debt. This is the risk of running budget deficits that many have pointed out, and rising interest rates makes it even worse.
This can lead to a worsening situation in which higher debt charges lead to higher deficits, which then leads to higher debt, which leads to higher debt charges and the cycle repeats again.
Higher than projected government spending is also responsible for part of the higher deficit, according to the PBO.
After just over two years, we are already seeing the Trudeau government pushing our national finances out of control. Their own projections have been proven false, and their deficits are starting to compound in higher and higher debt charges, leaving less money for tax cuts, less money for healthcare, less money for infrastructure, and less money for everything else.
With these continued deficits and higher debt charges, the only people benefiting are the international banks getting rich off our debt.
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