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

Agassiz Community Health Centre welcomes its newest doctor

Nikki Cohen is one of three doctors practicing at the local health clinic

No home for Agassiz Community Garden on school district land

The garden is still homeless after SD78 said no to the society using the McCaffrey School property

Life rings, signs to improve safety on Harrison waterfront

Harrison council approved $125,000 in aquatic safety projects for the beach

PHOTOS: Harrison students take on the Bunny Run

Harrison Hot Springs Elementary students dressed up for the Easter event

No more mobile vendors on Harrison beach

The approval of an updated business licence bylaw means Nolan Irwin is without a cart

VIDEO: Agassiz, Harrison celebrate National Pet Day

From cats and dogs to lizards and chickens, residents showed off the animals that enrich their lives

B.C. fire department rescues kittens

Enderby homeowner not aware kittens in wood pile near garbage pile fire that got out of hand

RCMP looking for witnesses to four-vehicle crash in Burnaby

Police suspect impaired driving was a contributing factor

QUIZ: How much do you know about Easter?

Take this short quiz and put your knowledge to the test

B.C. VIEWS: NDP’s lawyer show is turning into a horror movie

Court actions pile up over pipelines, car insurance, care aides

Global Affairs warns Canadians in Sri Lanka there could be more attacks

A series of bomb blasts killed at least 207 people and injured hundreds more

VIDEO: Fan support almost deafening as Giants take Game 2 in finals

Vancouver G-Men cap comeback with thrilling third period to beat Spokane 4-2 on home ice in Langley

Waste not: Kootenay brewery leftovers feed the local food chain

Spent grains from the Trail Beer Refinery are donated to local farmers and growers, none go to waste

Most Read