Mr. Speaker, the June 2009 second report to Canadians on Canada’s economic action plan provided an update to the fiscal forecast for 2008-09 and 2009-10. The report is available online at http://www.fin.gc.ca/pub/report-rapport/2009-2/index-eng.asp. Canadians can follow progress on the government’s website for the economic action plan at www.actionplan.gc.ca. As outlined on page 218 of that document, based on economic and fiscal developments since budget 2009, the deficit has been revised up by $2.9 billion for 2008–09 and $8.1 billion for 2009–10. This deterioration reflects, in part, the impact of automatic stabilizers, such as EI, which provide support to the economy by automatically raising spending and lowering tax collections as the economy slows. In addition, loans to the auto industry and the Canada health transfer top-up increased the deficit projection by $8.5 billion in 2009-10, so that the total projected deficit is $3.9 billion for 2008-09 and $50.2 billion for 2009-10.
The Fiscal Monitor, the most recent of which was released July 24, 2009, provides monthly highlights and details of the government’s fiscal performance. For the first two months of the fiscal year, there was a budgetary deficit of $7.5 billion.