The COVID-19 pandemic will likely push Canada’s deficit to $252.1-billion for the year.
The Parliamentary budget officer’s estimate is based on the nearly $146-billion in spending measures announced by the Trudeau government, projected declines in the country’s gross domestic product as well as the price of oil staying well below previous expectations.
Yves Giroux says additional spending might be needed should the pandemic last longer than expected, or the economy is slow to recover once measures are eased.
Giroux’s report also says the estimated are one possible scenario if current measures remain or are gradually, but not entirely, removed over the rest of 2020.
He also assumes real GDP will shrink by 12% this year.