People walk past the Peace Tower on Parliament Hill in Ottawa, on Nov. 4, 2025. The Canadian Press/Sean Kilpatrick
The Parliamentary Budget Office (PBO) estimates that the federal government’s budget deficit for 2026 will be $4.6 billion higher than it projected in its spring economic update, and that economic growth will also be lower.
The PBO’s June 4 Economic and Fiscal Outlook, which outlines its 2026 projections for economic growth, government spending, and inflation, comes a week after Canada entered a technical recession due to two consecutive quarters of GDP contraction.
