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Huge deficit but more spending still to come

The government confirmed today that it is allocating additional funds to various COVID-19 related programs that will cause the deficit to widen to $343bn this fiscal year, or 16% of GDP. And with Finance Minister Bill Morneau also hinting that the government will now turn its attention to measures to help secure the recovery further down the line, the deficit may remain wider than we anticipated in 2021.

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