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OTTAWA — The parliamentary budget overseer is predicting a budget deficit in the current fiscal year that’s almost $2 billion higher than was forecast in the government’s fall fiscal update last week.

The latest report from the parliamentary budget officer says the deficit this year will be $20.2 billion, while Finance Minister Bill Morneau’s last prediction was $18.4 billion.

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Both numbers are well below the $25.5-billion deficit projection in last spring’s budget.

The budget office says it expects to see the federal deficit decline gradually, falling to $9.9 billion in 2022-23.

It says lower direct program spending accounts for most of the reduction in the deficit over the period.