I don't think anyone should be really surprised by
news that the Canadian federal deficit will be much, much, larger than we had been led to believe.
Finance Minister Jim Flaherty said Monday the federal deficit will be "substantially more" than the government projected in January's 2009-2010 budget.
The initial deficit forecast was $34 billion. But Flaherty said that government revenues have been hit harder by the recession than expected.
"We will run a larger deficit in this year than anticipated in January, and I'll report further on that when the government reports to the people of Canada and Parliament in June with our update," he said.
The government has also forecast a $30-billion deficit for 2010-2011, and more deficits in the following three years.
Gee, it seemed like it was only a few months ago that Harper was claiming he'd never run another deficit.