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OTTAWA – The federal government’s deficit for 2018-2019 will be lower than expected, according to updated data presented on Tuesday by the parliamentary budget officer (DPB).
It is expected to be $ 2.1 billion less than the 18.1 billion $ provided by the federal ministry of Finance last fall in its economic statement, and $ 3.4 billion less than what the DPB was intended in October, said the DPB by press release.
It is therefore anticipated that the deficit will be $ 16 billion (0.7% of GDP) for 2018-2019.
This decrease can be explained “primarily due to a stronger than expected taxes on income”.
These new estimates are based on “an increase of $ 2.6 billion in anticipated revenues in 2018-2019” and “a decrease of $ 0.8 billion in our estimate of spending,” wrote the watchdog of the federal budget.
The DPB estimated that the real GDP growth will remain low (1 % on an annual basis) in the first quarter of 2019, as it was the case in the fourth quarter of 2018 (1 %). This softness is due to “declines in residential investment and business investment”. The oil sector is particularly referred to due to the low oil prices of the West.