Canadian Finance Minister Bill Morneau released forecasts showing he’s inherited a much worse fiscal outlook than expected as the country’s finances take a big hit from the oil price slump. A fiscal update released by the finance department showed Canada on pace for red ink even before newly elected Prime Minister Justin Trudeau kicks off his plan for deficit spending. The latest projections are for a C$3 billion ($2.3 billion) deficit in the fiscal year that began in March, compared with a C$1.4 billion surplus budgeted by former Finance Minister Joe Oliver. To take into account growing risks to the outlook, Friday’s update — which doesn’t reflect any new measures — includes revenue assumptions that fall C$2 billion short of those used in the previous government’s April budget . It’s a more cautious outlook that suggests Trudeau will need to bring Canada deeper into deficit than he campaigned on, […]