The Federal Government's 2017–18 Budget gives
Canadians a taste of what they might expect over the next couple of
years: attempted efficiencies, closed tax loopholes, steady
deficits, and a touch of caution. Budget 2017 outlines only $200
million in net new spending, but also an increase to the deficit of
more than $5 billion for 2017–18, partly due to commitments
from the previous budget, reduced revenues and increased general
expenses.
The projected deficit for 2017–18 is $28.5 billion,
declining to $18.8 billion by 2021–22 (including an annual $3
billion contingency fund). However, if the government's strong
growth scenario plays out, we could see a much smaller deficit
between $5 and $8 billion by 2021. Instead of planning to eliminate
the deficit as previously proposed, the government says it will
maintain a balanced net debt-to-GDP ratio of around 31 per cent
over the next five years.
