While the deficit is declining the risk the country is descending into recession is rising.
Deputy Prime Minister and Finance Minister Chrystia Freeland delivered the fall fiscal update with new targeted spending for low-income Canadians, students carrying debt and the already announced Canada Growth Fund meant for private investment to bring in new jobs and reduce emissions.
There was some good news for students in the fiscal update.
The government has made permanent its pandemic-era measure to stop charging interest on student loans.
That’s expected to save the average student more than 400-dollars a year.
Freeland warns the country could fall into a mild recession in the first quarter of 2023.
As far as red ink, the deficit is just over $36 billion, but that is down about $16 billion from April.
The feds say they could have a balanced budget in the next five to six years.
-With files from the Vista National Newswire