Canada's 2023 Budget Projects Higher Deficits, Shallow Recession

OTTAWA, (UrduPoint / Pakistan Point News - 29th Mar, 2023 ) --:The Canadian government on Tuesday unveiled its 2023 Federal budget with higher deficits, as economists expected a shallow recession in 2023.

The budget, titled "A Made-in-Canada Plan," showed that the federal deficit is projected to be 43 billion Canadian Dollars (32 billion U.S. dollars) this fiscal year and 40.1 billion Canadian dollars (30 billion dollars) in fiscal year 2023-2024.

The cumulative budget deficits are billions of dollars higher between fiscal year 2022-2023 and 2027-2028, relative to the 2022 Fall Economic Statement.

The increase results from a slowing economy and huge new spending in federal-provincial-territorial health deals, the federal dental plan and green investment.

Net new spending totals 46 billion Canadian dollars (34 billion dollars) over six years, with roughly 70 billion Canadian dollars (52 billion dollars) in gross new spending offset by 24 billion Canadian dollars (18 billion dollars) in revenue measures and expected cost savings.