Ottawa could reach the zero deficit five years earlier than planned — by the year 2045

Photo: Sean Kilptarick The canadian Press
The economy of Canada was a fairly good year in 2017, which translates into an improvement in budget balances of the government and of the ratio of debt to GDP.

Ottawa — economic growth that is more sustained than expected in 2017, saving approximately a few years in the timeline towards the achievement of the zero deficit in the federal government, concludes a new report from the ministry of Finance.

 

This report predicted that in the current state of public policy in Ottawa, the federal government could be expected to show annual deficits until 2045-2046, which is still five years earlier than he predicted last year.

 

However, the report notes that” given the uncertainty intrinsic surrounding long-term projections and the range of possible outcomes, these projections should not be regarded as forecasts, but rather as ” a reference scenario plausible “.

 

After difficult times in 2016, the economy of Canada was a fairly good year in 2017, which translates into an improvement in budget balances of the government and of the ratio of debt to GDP. The report stresses, however, that the continued aging of the canadian population could weigh on economic growth over the next few years.

 

The liberals of Justin Trudeau were elected in 2015, after having promised, in particular to revive and support the economy through massive infrastructure investments. They admitted from the outset that because of these investments, the federal government would have the effects of annual deficits of more than $ 10 billion for a few years, until the budget was balanced in 2019-2020 — just before the next general elections.

 

Faced then with the fall in oil prices in 2016, the liberals have finally abandoned these budget targets for the return to deficits, zero, and they don’t have one set of new since.

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