The budget balance for the first two months of the year was released Friday, showing a $2.6B expansion of the deficit driven by lower corporate taxes and GST revenue…

… offset partly by a $1.6B jump in import duties, as the trade war drags on. At $2.4B through the first two months, we’re running short of the $20B projection…

… which we’ll need alongside sizeable spending cuts if the country is to track to last year’s deficit or lower while paying $9B more for defense.

Without it, expect more debt - following $50B of Canadian dollar issuance through April and May.