PBO to Release Deficit Estimate Amidst Budget Delay

Parliamentary Budget Officer Yves Giroux will release a new deficit estimate on Thursday, providing key financial figures. The Liberal government delayed the 2025 budget until fall.

Prime Minister Carney postponed the budget, usually tabled in February or March, until after the House of Commons resumes in September. He cited trade tensions and increased military spending. Opposition MPs want a budget or fiscal update before the summer break.

Giroux's report will focus on the fiscal year ending March 31, not the current one. He provided a rough estimate for the current year during a hearing.

Parliament is still approving spending through estimates, including a $9.3-billion boost for defense. This includes $2-billion for Ukraine.

Giroux will release an update on Thursday. He referenced the Liberal platform, which projected a $62.3-billion deficit. He expects the deficit to be between $60 and $70 billion.

The PBO previously estimated a $50.3-billion deficit for 2024-25. Thursday's report will show a slightly smaller deficit for the year ending March 31, due to higher tax revenues. The official figure will be released in the fall.

Giroux said the lack of a budget makes it hard for MPs to review spending requests. A budget provides a broader fiscal picture.

He questioned how the government will fit the defense spending increase into its plans. He noted that the government spends about $60 billion on personnel. He concluded that with the new spending and investments, something will have to give.