Ottawa’s record-setting $78.3 billion deficit is expected to grow even larger before the fiscal year ends March 31, the Senate national finance committee was warned, raising fresh concerns about the federal government’s spending trajectory.“There have been additional announcements since the budget,” Interim Parliamentary Budget Officer Jason Jacques testified. Measures such as the launch of a five-year, $13.8 billion increase in GST credits would, “in isolation, increase the deficit this year,” he said.Blacklock's Reporter said the 2025 deficit was originally projected at no more than $26.8 billion. That figure was revised November 4 to $78.3 billion — the highest shortfall in Canadian history outside of pandemic-era overspending.Sen. Elizabeth Marshall (N.L. & Labrador) questioned how much further the deficit might climb.“There have been a number of policy announcements by the government and legislation for some additional programs,” she said. “It looks to me like the deficit, which was expected to be $78 billion for this year, may now run a bit higher.”Jacques did not provide an updated figure but confirmed a revised Economic and Fiscal Outlook would be released toward the end of March or early April to account for the new measures..“With respect to our forecast for the deficit this fiscal year and the years ahead, we will be publishing our updated Economic And Fiscal Outlook… which will take into account these additional measures,” he said.Jacques also told senators his office continues to face obstacles obtaining timely financial information from federal departments and agencies, limiting Parliament’s ability to scrutinize spending.“The mandate of our office is to promote transparency for parliamentarians so you are in a better position to do your job,” he said, noting there are now 993 outstanding information requests posted publicly on his office’s website.Canada has not balanced a federal budget in 19 years, with the last surplus recorded in 2007. Over the past century, the only longer stretches of continuous deficits were 17 years during the Great Depression and Second World War from 1930 to 1945, and a 26-year run from 1970 to 1996.Finance Minister François-Philippe Champagne acknowledged last November that spending restraint would be necessary but set no timeline for returning to balance.“We needed to find savings,” Champagne said at the time. “I think Canadians have been tightening their belt for quite some time and if you want to be credible when you’re saying you are going to make generational investments you also have to have the discipline to look at how you can make government more efficient.”With new spending measures still being rolled out and no firm plan to eliminate the deficit, Parliament now faces the prospect of even deeper red ink before the books close on March 31.
