OTTAWA — The federal government says next year's budgetary deficit will be nearly five times larger than forecast just three months ago — a shortfall likely to more than double the $10-billion cap promised by the Liberals.

Battered by the fallout from collapsing oil prices, the government is projecting a deficit of at least $18.4 billion for 2016-17 — a far cry from the $3.9-billion shortfall they predicted back in November. And by the time they unveil their maiden budget on March 22, it will likely exceed $20 billion.

Finance Minister Bill Morneau participates in a town hall meeting ahead of pre-budget consultations in Ottawa on Monday. (Photo: Adrian Wyld/CP) That's because while Monday's economic update factored in the struggling Canadian economy, it did not include billions of dollars in forthcoming Liberal campaign promises, including infrastructure spending. It's rare for a federal finance minister to release economic projections just weeks before a budget — a sign, perhaps, that Finance Minister Bill Morneau wanted to give Canadians a chance to brace for impact next month. Morneau staged a campaign-style town hall event Monday to deliver the bad news, even going to far as to reassure those who voted Liberal last October not to lose faith in the decision they made at the ballot box. "Given the economic situation in which we find ourselves today, Canadians made the right choice," Morneau said. "I know the cries will get louder over the next few weeks, but I won't have budget 2016 simply become a kneejerk reaction to recent economic shifts. We'll be acting out of reason." The federal Finance Department is also predicting a $15.5-billion deficit in 2017-18 — significantly higher than last fall's $2.4-billion estimate. "I know the cries will get louder over the next few weeks, but I won't have budget 2016 simply become a kneejerk reaction to recent economic shifts." The Liberals are banking on some of their vows to help revive economic growth and create jobs in Canada's struggling economy. The party's election platform called for billions in "new investments" for 2016-17, a tally that doesn't include numerous uncosted Liberal promises. "I'm talking about investments, not spending," said Morneau, who, like Prime Minister Justin Trudeau himself, has dropped hints that the Liberal promise to balance the budget in four years may also be in jeopardy. "In a volatile economic situation," the minister said, "it may take a little longer than we expected." Interim Conservative leader Rona Ambrose wasted no time in portraying the Liberals as wanton spendthrifts who have no regard for the long-term consequences of their cavalier bookkeeping. "Today is a sad day for Canadians," Ambrose said from the House of Commons foyer. "I don't think the Liberals know that no matter how much money they actually borrow, they actually have to pay it back ... they cannot blame their broken promises and runaway spending on a slowing economy." The Conservatives insist they left the Liberals with balanced books, a claim buttressed Monday by the latest fiscal monitor numbers, which showed a budgetary surplus of $3.2 billion over the first nine months of 2015-16 — from April to December 2015.

Now is the time to make investments to build a stronger middle class and foster long-term economic growth. pic.twitter.com/yZGSmjRGRd — Bill Morneau (@Bill_Morneau) February 22, 2016