Ottawa's finances are in better shape than expected — but don't get used to it, say economists

The federal public accounts show that the finances of the federal government are getting better.

In the spring budget, the federal deficit was projected to be $28.6 billion. The budget projected a deficit of $113 billion, but the actual deficit was $90.2 billion.

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Revenues increased by 30.6 per cent from the previous year.

The risks to the federal fiscal outlook are tilted towards larger deficits.

Its economists expect a recession next year and their forecast for GDP growth is less than the federal government's.

According to a report, an overtightening by the Bank of Canada could lead to a more severe recession than we currently expect.

As central banks raise interest rates to fight inflation, the government of Canada will have to pay more for borrowing.

Canadian Press reports additional information.