Prime Minister Justin Trudeau has announced that this year’s budget deficit will be larger than the Liberal’s promised $10-billion shortfall cap. It is unclear how much larger it will be. He is now shying away from the major promise in the Liberal election platform – that the budget would be balance by the end of his government’s four-year mandate.
The increased 2016-17 budget deficit is the result of a weakened economy. And if it continues to weaken, it will be unrealistic for the Liberals to balance the books by 2019-20. The deficits could total $90B by then. Just 2 months ago, Trudeau insisted that the promise to balance the books by then was “very” cast in stone.
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