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

Our View: Talking to kids about drugs

Communication is even more vital in the wake of an apparent overdose death

B.C. manhunt suspects left cellphone video before they died: family

Two B.C. suspects of a Canada-wide manhunt reportedly recorded a cellphone video… Continue reading

North Island drug deaths spike, rate second-highest in B.C.

Area spanning north from Comox Valley trails only Vancouver in fatal overdose rate

Dead Vancouver Island man identified, shoes and backpack missing

Investigators say body found in Saanich was Victoria’s Andrew Michael Sidor

Four years, no answers in murder of Deedee Brown

Chemainus-area teen was last seen with friends on Penelakut Island in summer of 2015

Disney Plus to launch in Canada in November

Analysts say latest streaming service may escalate cord cutting

Parksville man, 75, goes missing from north Nanaimo home

Police dog services called in to help with search

Restrictions ordered to save fish in parched Cowichan Valley river

Province says Koksilah River fish populations under threat due to low water flows

Tow strap trips up Victoria cyclist

Police looking for witnesses to incident where cyclist hit line connecting vehicles

North Island wildfire listed as out of control

But Sara Lake blaze near Port Alice expected to be under control soon

Okanagan bus driver assaulted for asking patron not to smoke

59-year-old in hospital with non-life threatening injuries

Graffiti clean up costs Victoria businesses roughly $1M a year

Business association teams up with city in campaign to reduce graffiti in downtown

PHOTOS: Hundreds welcome HMSC Regina home to Vancouver Island

Navy ship returns to Esquimalt after nearly 6 months at sea

Most Read