Parliament's spending watchdog says the federal government's response to the COVID-19 pandemic should send the deficit soaring to $363.4 billion.

In a report released this morning, budget officer Yves Giroux says the deficit should fall over time as emergency spending measures wind down over the next 12 months.

The economy is also faring better than Giroux anticipated.&nbsp;His office has revised its projections for economic growth starting in the second half of this year.

Budget officer blasts lack of detail in Liberals' $100B stimulus plan

Parliament's budget watchdog is raising red flags over the lack of details in the Liberal government's $100-billion stimulus plan, suggesting Finance Minister Chrystia Freeland's phone is likely "ringing off the hook" from lobbyists wanting a piece of the action. 

A bald man with a white grey beard who's wearing a blue suit holds a pile of papers.

Parliamentary Budget Officer Yves Giroux waits to appear before the Commons Finance committee on Parliament Hill in Ottawa, Tuesday March 10, 2020. Parliament's budget watchdog is projecting that the federal deficit for the coming fiscal year could be $112.7 billion, a jump of $89.5 billion from previous forecasts as government spending climbs to combat the economic fallout from COVID-19. 

COVID PBO 20200327

Parliamentary Budget Officer Yves Giroux says he is concerned by the lack of detail offered by the government on its three year stimulus plan.

Ottawa proposes $7B top-up to transfers for health care, infrastructure

Deputy Prime Minister Chrystia Freeland said today the federal government plans to provide a one-time payment of $7 billion to provinces, territories, cities and First Nations communities to help them cover health care costs, COVID-19 vaccination campaigns and infrastructure projects.

A nurse in front of a building that says 'Emergency' on its entrance

A health care worker is seen outside the Emergency dept. of the Vancouver General Hospital in Vancouver on March 30, 2020. The federal government is proposing a one-time top-up of $7 billion to provinces, territories and cities, over half of which will go toward immediate health care needs.

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With the economy doing better than expected, and the deficit falling over time, the budget office predicts that federal finances will become sustainable again.

The economy also&nbsp;could get a boost from the Liberals' promise of three years of&nbsp;fiscal stimulus,&nbsp;valued between $70 billion and $100 billion. The stimulus plan is&nbsp;to be outlined in the coming&nbsp;federal budget.

Giroux's outlook doesn't account for that spending because of a lack of details about how it will be used — but he does warn it would result in larger deficits that may spin out of control, depending on how it's&nbsp;financed.

The economy is doing better than Parliamentary Budget Officer Yves Giroux  anticipated, and his office has revised its projections for economic growth starting in the second half of this year. 

PBO predicts $363-billion deficit, issues warning about stimulus spending

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