WASHINGTON (Pakistan Point News / Sputnik - 29th March, 2023) Canada's Federal deficit is projected to grow from $30.6 billion recorded in November to $40.1 billion between 2023 and 2024, the Canadian government said in a budget proposal.
The budget proposal released on Tuesday also showed that the debt-to-GDP ratio in 2023-24 is predicted to be 43.5%, an increase from 42.2% recorded in November.
However, the Canadian government expects the federal debt-to-GDP ratio to continue on a declining path from 2024-25 onward regardless of a rise due to the global economic slowdown and lower forecasted GDP.
The federal deficit is also projected to decline every year and return to 1% of GDP or lower in 2025-26, the budget proposal read.
Canada's spending plan is expected to remain fiscally sustainable over the long term, according tot he budget proposal.
