Finance Minister Bill Morneau’s fall economic update shows deficits over the next five years will be bigger than previously thought.
Ottawa’s deficits will be a total of $31.8 billion bigger than projected in the last budget, mainly because of slow economic growth.
The updated figures show that the deficit this year will be $25 billion, which is $2 billion higher than projected.
The red ink will continue to flow in 2017-18, with the deficit expanding to almost $28 billion.
Morneau also says he will create an infrastructure bank with $35 billion in seed capital, meant to leverage private-sector investment and spur growth.
For now, the government has eliminated the $6-billion contingency fund that was set aside for every year in last year’s budget to deal with unexpected problems, a move that makes the government’s deficit figures seem slimmer.