The government does not appear to be making good on its promises to reduce the budget deficit.

According to the assessment of Desjardins, “spending beyond all parameters” means that by March 31, the end of the fiscal year, the debt will reach $47 billion.

That raises the question of how Treasury Secretary Chrystia Freeland plans to meet her commitment to keep the deficit under $40 billion through 2026.

“I think it will be an exercise in creative accounting,” said Randall Barrett, CEO of Desjardins. “They will have to either cut spending or raise revenue.”

Analysts and economists warn that without tax hikes or spending cuts, the deficit will continue to grow, amid slowing economic growth. That has led to speculation that Freeland will include a corporate tax hike in her budget on April 16.

The government will be the target of criticism and accusations of being unfriendly to businesses, and in any case, Barrett believes it will do little to resolve this year's financial crisis.

"Trying to impose a retroactive tax on companies may be difficult and will not help create a stable and predictable environment for investment," he says.

Mariana V