Canada’s Two-Year Government Outlook—April 2022

Document Highlights

This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on government. For an overview of all major components of the economy, go to the Canadian Outlook main page.

With the majority of support measures removed, the federal government looks to enter the next phase of the economic recovery.

Budget 2022 did not deviate too far from the fall fiscal plan. A much improved revenue outlook made room for increases in defence spending and the introduction of a new dental program.

Latest estimates peg the deficit at $53 billion for 2022–23. This is a far cry from 2020–21’s $328 billion shortfall, but still a long road ahead for the federal government.