Prime Minister Justin Trudeau (The Canadian Press)

COVID-19: Budget officer says federal deficit could top $252 billion

Yves Giroux’s report assumes real GDP will contract by 12 per cent this year

Parliament’s budget watchdog says that it’s likely the federal deficit for the year will hit $252.1 billion as a result of the COVID-19 pandemic.

The figure is an estimate based on the almost $146 billion in spending measures the government has announced to help cushion the economic blow from the pandemic, estimated declines in the country’s gross domestic product, and the price of oil remaining well below previous expectations.

Parliamentary budget officer Yves Giroux’s report assumes real GDP will contract by 12 per cent this year, and help shoot the federal debt-to-GDP ratio to 48.4 per cent.

The report out this morning says the debt ratio could keep rising if some of the emergency aid measures are extended or made permanent.

Giroux says extra spending may be required if the situation persists for longer than expected, or the economy is slow to recover when restrictions are lifted.

His report says the estimates are one possible scenario if current public health measures remain or are slowly, but not entirely, lifted over the rest of the calendar year.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nelson council takes over farmers’ markets from EcoSociety

Markets start June 13 and will be run by the Nelson and District Youth Centre

Nelson offers financing for homeowners to purchase electric bikes

Loan payments will be applied to hydro bills as part of the EcoSave home retrofit program

Pay guarantee removed for some Kootenay on-call paramedics

Guarantee phased out as BCEHS introduces a new “scheduled on call” model

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

Help the Nelson Star continue its mission to provide trusted local news

Black Press is now accepting donations to keep its papers operating

‘I’m pissed, I’m outraged’: Federal minister calls out police violence against Indigenous people

Indigenous Minister Marc Miller spoke on recent incidents, including fatal shooting of a B.C. woman

Plan in place for BC Ferries to start increasing service levels

Ferry corporation reaches temporary service level agreement with province

B.C. starts to see employment return under COVID-19 rules

Jobless rate for young people still over 20% in May

Kelowna Mountie on desk duty following ‘aggressive’ arrest

The officer involved in an arrest that took place on May 30 in Kelowna has been placed on administrative duties

Protests shift to memorializing George Floyd amid push for change

‘There is something better on the other side of this,’ says Atlanta Mayor Keisha Lance Bottom

Columbia Basin Trust expands programming to support businesses

The revised programs will help local businesses to reopen and modify operations

Limit gun capacity to five bullets, victims group urges Trudeau government

Current limits are generally five bullets for hunting rifles and shotguns and 10 for handguns.

Most Read