After riding a red-hot economy to shrink deficits and grow surpluses, provincial governments across the country are beginning to see their finances flounder.
Each province has released their budget for the upcoming year and collectively are facing higher spending and record-size debt.
Alberta and New Brunswick are the only provinces to publish balanced budget projections compared to eight of the 10 provinces reporting a surplus two years ago, when a strong national economy and high commodity prices helped fill many provincial coffers.
Now, the “shine is wearing off,” describes a report by BMO Capital Markets, as revenue growth is slowing and spending is on the rise.
The combined provincial budget deficit is on track to swell from $10.6 billion last year to $27.9 billion this year. Total provincial net debt is expected to climb by more than $65 billion this upcoming fiscal year,…
