A new economic analysis from Desjardins suggests the federal government’s fiscal position has weakened significantly ahead of next month’s fall budget, largely due to recent income tax cuts and the removal of counter-tariffs on U.S. goods.
In a report released Tuesday, Desjardins deputy chief economist Randall Bartlett said Ottawa’s deficit could climb to $74.5 billion this fiscal year — about $6 billion higher than the parliamentary budget officer’s most recent projection. Bartlett said the combination of higher spending on defence and infrastructure, along with tax relief measures ...