Canada's budget watchdog says the federal government is likely to fall about $9-billion further into the hole over the next two years than the budget projected in January.
Parliamentary budget officer Kevin Page told a Commons committee Wednesday that the economy has deteriorated so much since the January budget that any stimulus from increased government spending will have been swamped by lower growth.
Mr. Page says Ottawa will record a deficit of about $38-billion this fiscal year and $35-billion in 2010-11, about $9-billion more over the two years than Ottawa projected.
Not surprisingly, the Conservative budget assumptions weren't worth the paper they were printed on.