Canada government cuts growth forecast, to run big budget deficit

By David Ljunggren OTTAWA (Reuters) - Canada's new Liberal government, citing a sluggish economy and low commodity prices, cut its growth forecast on Monday for 2016-17 and said it would run a much bigger budget deficit than earlier expected. Finance Minister Bill Morneau, citing an average of private sector economists' forecasts, said growth in 2016 would be 1.4 percent, down from the 2.0 percent it forecast in November. In November, the Liberals had forecast that excluding their spending plans