wenty-four hours after the finance department projected a possible deficit of more than $18 billion, Finance Minister Bill Morneau is appearing before MPs as part of the finance committee’s pre-budget consultations.
Shortly before Morneau’s appearance, the government confirmed that it will provide Alberta with approximately $250 million as part of the federal stabilization program, a fund that can be drawn from if a province experiences a year-over-year decline of more than five per cent in non-resource revenue.
While the Liberals committed during last year’s campaign to running deficits of no more than $10 billion, the federal government now argues that low oil prices and weak economic growth will necessitate a larger shortfall.
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The government’s $18-billion projection does not include the vast majority of Liberal spending promises, raising the possibility that the first federal budget for the new Liberal government will have a deficit of as much as $30 billion.
The Liberals have also moved away from committing to a return to balance by 2019.
[“Source-cbc”]
