Analysts expect Prime Minister Mark Carney to push the federal government’s budget deeper into the red as Canada ramps up spending to bolster its military and infrastructure.

Canada’s budget deficit will be C$70 billion ($50.6 billion) this fiscal year, or more than 2% of gross domestic product, according to the median estimate in a Bloomberg survey of economists. That would be two-thirds higher than the C$42 billion the government had forecast in December.

On Sunday, Carney confirmed he plans to run a “substantial” deficit, higher than last year’s shortfall of approximately C$48 billion. The widening budget gap is driven by the shock of the ongoing trade war with the U.S., he said, which has hit revenues and required spending to support industry and workers and grow investment.

“There’

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