PBO Says Reformed Fiscal Stabilization Program to Cost Ottawa $4.5 Billion

PBO Says Reformed Fiscal Stabilization Program to Cost Ottawa $4.5 Billion
Parliamentary Budget Officer Yves Giroux waits to appear before the Commons Finance committee on Parliament Hill in Ottawa on March 10, 2020. The Canadian Press/Adrian Wyld
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OTTAWA—Reforms to a federal support program for provinces will nearly triple the cost to Ottawa next year, with the price tag projected to be about $4.5 billion, says Canada’s parliamentary budget officer.

Yves Giroux says the government’s fiscal stabilization program, which transfers cash to provinces that experience steep year-over-year revenue drops, will increase by $2.9 billion in fiscal 2021-22.