Congressional budget officials said the federal government likely was unable to keep the budget deficit below the promised $40 billion limit last fiscal year.
Budget watchdog projects $46.8 billion deficit in fiscal year 2023-24
Congressional budget officials said the federal government likely was unable to keep the budget deficit below the promised $40 billion limit last fiscal year.
However, in its latest economic and fiscal outlook released today, the PBO also expects this year’s weak economic growth to begin to improve in 2025.
The budget watchdog estimates in a report that the federal government ran a $46.8 billion deficit in the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to cap the budget deficit at $40 billion, and said in her spring budget that the deficit would remain in line with that promise in 2023-24.
The final tally of last year’s deficit will be confirmed when the government releases its annual public accounts report this autumn.
The People’s Bank of China expects economic growth to remain weak this year but recover in 2025 as Bank of Canada interest rate cuts stimulate consumption and business investment.
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