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

Broadwater Road in Robson closed due to flooding

Glade Ferry is also experiencing delays due to debris

Severe storm warning remains in effect for the Kootenays

Two special weather statements have been issued for the West Kootenay

‘I knew what he wanted’: Man recalls black bear chasing him up tree in Slocan Valley

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

No passenger flights at West Kootenay Regional Airport until at least September

This is the third time Air Canada has announced changes to flight operations out of the airport

Minimum wage goes up June 1 in B.C. as businesses face COVID-19 challenges

The minimum wage jumps by 75 cents to $14.60 an hour on Monday

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Protesters rally against anti-black, Indigenous racism in Toronto

Police estimated the crowd to be between 3,500 and 4,000 and said there was no violence

Feds earmark $1.5M to support recovery of B.C., Indigenous tourism

B.C. money will be split between Vancouver Island and Indigenous tourism

‘We’re sick of it’: Anger over police killings shatters U.S.

Tens of thousands marched to protest the death of George Floyd

Join Kootenay family in virtual walk for Ronald McDonald House

“We always described it as our oasis in the middle of the desert,” Brigitte Ady shares.

Surrey mayor’s party under fire for ‘sickening’ tweet accusing northern B.C. RCMP of murder

Mayor Doug McCallum says tweet, Facebook post ‘sent out by unauthorized person’

Father’s Day Walk Run for prostate cancer will be virtual event this year throughout B.C.

The annual fundraiser for Prostate Cancer Foundation BC has brought in $2.5 million since 1999

Dr. Bonnie Henry announces official ban on overnight kids’ camps this summer

New ban comes after talking with other provincial health officials across the country, Henry says

Most Read