Last year’s federal deficit smaller than government predicted: analysis

OTTAWA — A new report says last year’s federal budgetary shortfall was smaller than the government predicted last spring.

The parliamentary budget officer projects Ottawa’s 2016-17 shortfall was $2.1 billion smaller than forecast.

The report says the improved deficit figure was due in large part to lower-than-expected expenses booked for the Liberals’ infrastructure investment program.

The independent budget office projects the final 2016-17 shortfall at $21.4 billion, although the government’s March prediction was $23.5 billion.