The PBO estimates $115.1 billion in net new spending from 2024-2025 until the end of the decade. Photo by TONY CALDWELL/Postmedia

The office of the Parliamentary Budget Officer is projecting a $68.5 billion deficit for the 2025-2026 fiscal year, a significant jump from $51.7 billion the year before, reflecting a slowing Canadian economy and new spending and revenue measures.

The PBO’s latest economic and fiscal outlook released on Thursday accounts for new measures announced by the federal government since the Fall Economic Statement, including Pri me Minister Mark Carney ’s recent promise to create a $5-billion response fund for those affected by the U.S. trade war.

Combining these new measures, the PBO estimates $115.1 billion in net new spending from 2024-2025 until the end o

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