Pension Reform or Deficit Doom?

Finance Minister Bill Morneau provides a fiscal update in the foyer of West Block in Ottawa on Dec. 16, 2019. Parliamentary Budget Officer Yves Giroux was alarmed after the update projected a deficit $7 billion higher than the budget announced in March. The Canadian Press/Adrian Wyld

Commentary

How scary are Canada’s federal deficits really? Parliamentary Budget Officer Yves Giroux was alarmed after the recent fiscal update projected a deficit $7 billion higher than the budget announced in March. As it turned out, much of the blame was due to accounting changes on pensions and benefits for federal employees.