Canada's federal budget deficit will be billions of dollars deeper than it was supposed to be this year and next, according to the Finance Department. The figures released this morning show that the Liberals' projected deficit of $19.8 billion for the 12-month period that ends in March is now slated to hit $26.6 billion. But Finance Minister Bill Morneau counters that Canada's debt levels will go down over the next four years as a measure of the overall economy.