Stronger economic growth to boost feds’ bottom line by billions: experts

Firmer growth to improve feds' bottom line

OTTAWA — If economic growth surges in line with the Bank of Canada’s latest predictions, experts say the feds will enjoy a multibillion-dollar bump on their balance sheet.

After several months of surprisingly strong economic data, the central bank raised its 2017 growth projection this week to 2.6 per cent, up from its January call of 2.1 per cent.

In comparison, the federal government released a budget last month that based its fiscal numbers on a growth forecast for this year of 1.9 per cent — a number that came from a December survey of private-sector forecasters.

The chief economist for a University of Ottawa think tank says a rough estimate suggests the difference would add between $1.5 billion and $2 billion to the federal bottom line over each of the next three years, starting in 2017.

Randall Bartlett of the Institute of Fiscal Studies and Democracy says the central bank’s prediction for this year is in line with updated market expectations and the boost would provide Ottawa with more revenue over the next three years.

The Trudeau government’s budget predicted a shortfall this year of $28.5 billion, including a $3-billion reserve set aside for emergencies. The feds also projected deficits of $27.4 billion in 2018-19 and $23.4 billion in 2019-20.

The Canadian Press

Just Posted

Juan de Fuca curlers ‘reeling’ after learning rink will be replaced with dry floor

West Shore Parks & Recreation board says curling rinks not getting enough use

The rock is no more for Oak Bay ‘Sea Lore’

Council calls for change to controversial location proposed for art installation

Metchosin driver striking a deer heralds a need for caution

Vehicle incident likely not the last of its kind in Greater Victoria

Mary Winspear offers out-of-this-world evening with Chris Hadfield

Tickets on sale March 22 for Colonel Chris Hadfield visit May 7

Five highlights in the 2019 federal budget

Latest budget includes a sprinkling of money for voters across a wide spectrum

Greater Victoria Wanted List for the week of March 19

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: When do you think the next major earthquake will hit Vancouver Island?

According to seismologists, Vancouver Island is overdue for a magnitude 7 earthquake.… Continue reading

Facebook to overhaul ad targeting to prevent discrimination

The company is also paying about $5 million to cover plaintiffs’ legal fees and other costs

B.C. mosque part of open-house effort launched in wake of New Zealand shootings

The ‘Visit a Mosque’ campaign aims to combat Islamophobia

‘That’s a load of crap’: Dog poop conspiracy spreads in White Rock

Allegation picked up steam through a Facebook page run by a city councillor

Explosives unit brought in after suspicious boxes left at B.C. RCMP detachment

Nanaimo RCMP issues all clear after packages were found on lawn earlier in the day

2019 BUDGET: As deficit grows, feds spend on job retraining, home incentives

Stronger economy last year delivered unexpected revenue bump of an extra $27.8 billion over six years

Newfoundland man caught after posting photo of himself drinking and driving

The 19-year-old took a photo of himself holding a beer bottle and cigarette while at the wheel

Most Read