TORONTO—The federal government’s plan to run $113.2 billion in deficits over the next five years is premised on unrealistic assumptions regarding future spending restraint, which will likely result in much larger deficits and debt accumulation, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“The federal government’s five-year deficit could reach nearly $200 billion when more realistic assumptions about future growth in federal spending are included,” said Niels Veldhuis, president of the Fraser Institute and co-author of Moving Targets: Re-estimating Federal Deficits and Debt-to-GDP through 2020/21.
