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With three new reports released last week, including an economic outlook paper, the Parliamentary Budget Officer ratcheted down some of the sunny predictions made in the federal government’s 2018 budget. From deficits to cannabis revenue, here are five bleak forecasts from the watchdog.

Deficits

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It’s good news on deficits in the short-term, but it’s not going to last.

The PBO predicts a smaller deficit for 2017-18 than it predicted in October, mostly due to spending delays in the government’s infrastructure program. That will save about $600 million.

But the PBO predicts that the deficits in 2018-19 and 2019-20 will be about $4 billion more — or $22.1 billion and $21.4 billion, respectively — than the government predicted, thanks to “public debt charges, direct program expenses and children’s benefits.”

The carbon tax

The PBO warns that Canadians should expect an economic “headwind” thanks to the government’s impending carbon tax.