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Tax cuts, dropping U.S. tariffs will hurt Ottawa’s fiscal position: Desjardins report
Desjardins forecasts a $74.5 billion federal deficit due to tax cuts, tariff removals, and increased spending, exceeding parliamentary budget officer estimates by $6 billion.
- On October 22, 2025, Desjardins deputy chief economist Randall Bartlett published a new outlook ahead of the Nov. 4 federal budget, warning Ottawa’s deficit could be among the largest outside a recession or pandemic.
- Cutting income taxes and dropping counter‑tariffs on the United States worsened Ottawa's fiscal position, while defence and infrastructure spending pushed the deficit up this year.
- Bartlett estimates the federal deficit will hit $74.5 billion, $6 billion higher than the parliamentary budget officer's projections, and Desjardins says growth from tax and tariff changes won't offset lost revenue.
- The report cautions Canada should not take its strong global credit rating for granted, as persistent U.S. trade uncertainty could pressure Ottawa's debt position.
- The Canadian Press credited Craig Lord and ran a January 24, 2025 photo showing cranes around the Peace Tower on Parliament Hill, Ottawa.
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Desjardins Predicts Federal Deficit Will Be Highest in 3 Decades
Desjardins forecasts that the upcoming budget on Nov. 4 could include the largest federal deficit in the last 30 years, due to increased spending and lower revenues. A report release Oct. 22 by Desjardins economist Randall Bartlett, titled “Federal Budget 2025 Preview: A Budget Like No Other,” estimates the federal deficit could exceed $70 billion, which it notes is almost double the last official projection in the Fall Economic Statement of 202…
·New York, United States
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Desjardins' assistant chief economist predicts that the deficit will be among the largest in recent history.
·Montreal, Canada
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Winnipeg Free Press+23 Reposted by 23 other sources
Tax cuts, dropping U.S. tariffs will hurt Ottawa's fiscal position: Desjardins report
Breaking News, Sports, Manitoba, Canada
·Winnipeg, Canada
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Total News Sources38
Leaning Left22Leaning Right1Center5Last UpdatedBias Distribution78% Left
Bias Distribution
- 78% of the sources lean Left
78% Left
L 78%
C 18%
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