Canada's Revised Budget Deficit Projections Spark Economic Concerns

The Canadian government forecasts a budget deficit of C$61.9 billion for 2023/24, up from last year's estimate of C$40 billion. Ottawa's Fall Economic Statement highlights a federal debt-to-GDP ratio that aligns with fiscal objectives, but the deficit-to-GDP will exceed previous estimates for both the past and current year.

Canada's budget deficit projections have taken a significant turn, with the government announcing a forecasted deficit of C$61.9 billion for the fiscal year 2023/24. This figure shows a sharp increase from last year's estimate of C$40 billion.

In a detailed Fall Economic Statement, Ottawa outlined that while the federal debt-to-GDP ratio can meet fiscal objectives, the deficit-to-GDP ratio will be 2.1% for last year and 1.6% for the current year ending in March 2025.

These figures are notably higher than what authorities had previously estimated, indicating potential economic challenges ahead as the government navigates shifting financial landscapes.

(With inputs from agencies.)