OTTAWA, ON -- Tuesday’s federal budget will reveal whether the federal government’s plans to dramatically reduce the rate of spending growth over the last two years of its mandate are as unrealistic as they seem. If not, the result could be a worsening fiscal picture with high deficits and debt, writes Munk Senior Fellow Sean Speer. The government was elected on a commitment to run annual budgetary deficits of $10 billion for three years before reaching a balanced budget in 2019. Five months later the 2016 Budget showed Ottawa's deficit would be larger and longer. MLI’s latest report, A Tale of Two Governments: How Historical Trends Cast Doubt on Federal Promises of Fiscal Restraint, analyses the government's medium-term fiscal projections and the potential challenges to achieving its fiscal targets as we approach next week's federal budget.

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