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OTTAWA – The Liberal government expects to amass nearly $32 billion worth of additional red ink over the next five years, as it ratchets up capital spending and creates a new Canada Infrastructure Bank to dramatically overhaul how large projects are planned, funded and delivered across the country.

As the federal financial picture continues to erode – and spending increases – the government acknowledged Tuesday in its fall economic update that it has no timetable for balancing the budget.

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Between 2016-17 and 2021-22, the government is expecting to run approximately $130 billion worth of combined deficits.

The new Canada Infrastructure Bank is one of the federal government’s centerpiece items announced in an economic update that downgrades projected growth and forecasts that a worsening financial situation will soon gobble up all of the billions of dollars in fiscal contingency that was included in the spring budget.