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

Vernon gym knocked out by COVID-19

9Round Fitness in Vernon Square Mall owners announce permanent closure of facility

North Okanagan regional district board delays food scraps ban

Move is to help businesses and organizations during pandemic

2019 payroll costs City of Vernon $26M

City discloses remuneration report and CAO is top earner

Vernon minor hockey players make cut for documentary

Hockey 24 includes Austin Seibel and his Vernon Tier 2 Bantam teammates, filmed by Coldstream woman

Power knocked out for 1,700 Lake Country residents

BC Hydro crews on scene to restore the outage

Video: Okanagan mayors encourage water conservation this summer

Water conservation this summer could be more important than ever, experts say

Snapshot: Distanced dancing in Salmon Arm

Friends use picnic shelter at Blackburn Park for safe practice

Kelowna’s Homebase Baseball Tournament cancelled

A live auction will still take place to raise funds for Joeanna’s House

Kelowna General Hospital Foundation launches fundraising initiative to support local health care

The initiative also highlights workers at Kelowna General Hospital

Kelowna man charged with harming a hamster

The 20-year-old Kelowna man faces several animal cruelty charges

High tech fish transport system set up to ‘whoosh’ salmon past Big Bar landslide

Fish will spend roughly 20 seconds inside the system, moving at roughly 20 metres per second

Trudeau to seek 10 days of paid sick leave for Canadian workers, says talks are ongoing

Paid sick leave is key to keeping COVID-19 spread under control, prime minister says

Snowbirds jets will not be leaving Kamloops, just yet

The Snowbirds have been in Kamloops since May 17 when a plane crashed killing Capt. Jennifer Casey

COVID-19 checkpoints ‘up to them,’ Bonnie Henry says of remote B.C. villages

Support local tourism economy, but only if you’re invited in

Most Read