Budget watchdog forecasts deeper deficits than Ottawa projected in spring update | NanaimoNewsNOW

Parliamentary Budget Officer Annette Ryan adjusts the microphone as she waits to appears before the Standing Committee on Finance in Ottawa on Monday, March 23, 2026. THE CANADIAN PRESS/Adrian Wyld

By The Canadian Press

Jun 4, 2026 | 7:07 AM

OTTAWA — The parliamentary budget watchdog says Ottawa has less than a one per cent chance of maintaining the fiscal anchor of shrinking the deficit as a share of the economy every year.

Parliamentary Budget Officer Annette Ryan on Thursday released her office’s first economic and fiscal update since she assumed the role in April.

The budget watchdog predicts annual deficits will average $4.6 billion higher than Ottawa projected in its spring economic update.

The budget office expects the deficit for this fiscal year will edge down slightly to $71.8 billion — about $6.5 billion higher than Ottawa’s spring projection.