1. The Canadian Centre for Policy Alternatives predicts the federal budget deficit might hit $27 billion in 2009 and nearly double that the year after.
The report re-estimates the federal fiscal picture for four economic scenarios — each more pessimistic than the last — under existing tax and spending policies.
- The first scenario, in which the economy slows but avoids a recession, yields a deficit of $7 billion in 2009-10 and $5.4 billion in 2010-11.
- The second, involving a mild recession in 2009, yields deficits of $12.6 billion in 2009-10 and $20.5 billion in 2010-11.
- The third, involving a deeper recession, yields a deficit of $19 billion in 2009-10 and $31.3 billion in 2010-11.
- The fourth, involving a major recession and slower recovery, yields a deficit of $27.9 billion in 2009-10 and $46.8 billion in 2010-11.
2. British Columbia will post a $450 million surplus this year, down from $1.0 billion projected at the start of the current fiscal year. That news in the latest budget update from finance minister Colin Hansen.
3. Federal finance minister Jim Flaherty is planning to rush public works spending in the coming budget as a way of stimulating the economy.
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