OTTAWA, ON: The federal government will not balance the budget in 2027-28, according to revenue and interest projections published recently by the Parliamentary Budget Officer.
The federal government’s fiscal update projects a balanced budget in 2027-28 due to an extra $129.1 billion in revenue since the beginning of this fiscal year.
The PBO published its Economic and Fiscal Outlook on Oct. 13. The PBO projects 2027-28 revenue to be $11.1 billion lower than the fiscal update’s projections. The PBO also projects interest charges to be $2.8 billion higher in 2027-28.
Instead of balancing the budget in 2027-28, the federal government would run a $9.4-billion deficit using the PBO’s revenue and interest charge projections. This is a larger deficit than the fiscal update’s downside scenario, which projected an $8.3-billion deficit in 2027-28.