07:25 AM EST, 12/17/2024 (MT Newswires) -- Given the political uncertainty facing Canada after Finance Minister Chrystia Freeland, the fate of many of the measures announced Monday in the 2024 Fall Economic Statement (FES) is "highly uncertain," said RBC.

However, the fiscal update still serves as a snapshot of where the economy is headed and how upcoming challenges could be tackled going forward, noted the bank.

As expected, the federal government pared back on revenue projections since Budget 2024 (C$6.5 billion deficit in 2024-25), reflecting a sharper economic downturn and a reversal of Canada's post-pandemic immigration plan, stated RBC.

Lower revenues and new spending measures have resulted in deeper deficits over the course of the fiscal plan-including a "whopping" C$22 billion downward revision to the 2023-24 bottom line to C$61.9 billion. The 2024-25 deficit has also deteriorated by C$8.5 billion to C$48.3 billion.

According to the bank, these are the highlights in Monday's FES:

-- Deeper deficits over the course of the fiscal plan.

-- Breaches one fiscal anchor and is running close to the two others.

-- Extension of the Accelerated Investment Incentive (costing C$17.4 billion over five years).

-- C$1.9 billion for tax incentives for scientific research and experimental development over five years.

--C $1.6 billion for GST holiday effective last Saturday until next Feb. 14.

-- C$1.3 billion on border security over six years.

-- Relaxation of the 30% stake limit on pension funds.

-- Pledge to send most working Canadians C$250 checks was absent in fiscal update.