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Canada’s new Finance Minister reported his findings after inheriting the books from the outgoing Harper Government and apparently, it’s not what the conservatives had advertised during the election.

The official opposition were quick to point out that the Parliamentary budget officer reported a $1.2 billion surplus in it’s last report 10 days ago. Which led them to think some spending has already taken place behind closed doors. The NDP said they’re holding back comment until the Liberals reveal their plans to balance the books.

Fifteen days into running the country, the liberals are telling Canadians we’re in for a marathon

“The simple truth is that the economy hasn’t performed as well as last projected in the last budget.” Finance Minister Bill Morneau is projecting 1.5% growth, down from 2% and a deficit instead of a surplus.

Leading to the October elections, the Conservatives said the books were balanced and that we had a surplus of $2-billion, but today we’re told by the Liberals we’re at a $3-billion deficit, which brought many people to ask…where did that $5-billion go?

“The major cause of this deficit is what the Conservatives projected in the spring of the surplus is a lack of revenue” explains DeGroote School of Business professor Marvin Ryder. “When you’re expecting the economy to grow by 2% then you say my HST I’m going to collect is ‘x,’ but if it’s 1% then you have to cut back on the assumptions about the revenue.”

Morneau said a slow first and second quarter, plummeting oil prices and a weak global economy are to blame. But Morneau has a plan. “Canadians know that investments in our future will benefit us today. That includes transformative investment in infrastructure and a new plan for a strong middle class.”

But because of the deficit they’ve inherited, Ryder believes the Liberals will stretch out those investments. “Rather than spend $10-billion in infrastructure over three years spread it over four spread it out a little more and keep your deficits in line.”

Morneau projects that we’ll hit a surplus by 2019-2020. Right around the time the next federal election should take place.