Canada Prime Minister Justin Trudeau makes his way to his seat at the start of the First Ministers Meeting in Ottawa, Tuesday, Oct. 3, 2017. (Adrian Wyld/The Canadian Press via AP)

Budget watchdog says federal deficit this year to be $16.1 billion

Corporate income-tax revenues are $3 billion higher than the watchdog forecast in October

The parliamentary budget watchdog is projecting the federal deficit this fiscal year will come in $2.1 billion lower than the Liberals have predicted.

Yves Giroux’s office chalks up the change to higher-than-anticipated income-tax revenues that the government has collected this fiscal year, which closes in March.

A report out this morning from the parliamentary budget office predicts that this year’s budget deficit will be $16 billion, less than the $18.1 billion the Liberals anticipate.

Had the economy been weaker or tax revenues lower, the report says, the federal deficit for the 2018-2019 fiscal year could have hit $23.2 billion when taking into account extra spending in Finance Minister Bill Morneau’s fall economic update.

READ MORE: Finance Department predicts federal budget will be balanced by 2040

More than half the $7.2-billion swing in the projection is due to stronger tax revenues than Giroux predicted in the fall.

The report says corporate income-tax revenues are $3 billion higher than the watchdog forecast in October.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Haida Gwaii eagles recovering in Ladner care facility

Treatment for the eagles is both costly and time intensive

VIDEO: Rugby summer scrimmages get a professional touch

Former national team members hit the field with local players during weekly games

VIDEO: Kaien Anti-Poverty Society hoping to raise $20K in 50/50 community bingo nights

KAPS is looking to raise money for a new vehicle to support their growing food program

Heart of Our City: Kaps off to Colleen Hermanson

Colleen Hermanson began working in social services as early as 1968

Snickers and Superheroes at Udderfest

Fantasy and frivolity the Friday festival offerings

Captain, all-star, MVP, and all about the team

Brittanne O’Connor’s drive to create Prince Rupert’s own women’s team has led to success and inspiration

The Northern View announces inaugural Tyee Fishing Derby in Prince Rupert

More than $7,000 up for grabs for biggest legal salmon and halibut

The Northern View 2019 Readers Choice

It’s that time of year again! Vote online or at the Prince Rupert office before noon on Aug. 30

Vancouver man arrested after pregnant woman’s SUV stolen, then crashed

Police are recommending charges against a 22-year-old Vancouver man

Environment groups warned saying climate change is real could be seen as partisan

Talk of climate change could be viewed as advocating against Maxime Bernier, the leader of the People’s Party of Canada

Search crews find 4-year-old boy who went missing near Mackenzie

George went missing early Saturday afternoon

Most Read