OTTAWA - A new report from the federal Finance Department says better-than-expected economic growth in 2017 shaved several years of projected deficits from Canada's long-term financial future -- though many more years remain.

The report predicts that barring any policy changes, the federal government could be on track for annual shortfalls until 2045-46, compared to projections last year that deficits would run to 2050-51.

The report emphasizes the projections only represent a plausible baseline and are not forecasts because long-term estimates contain considerable uncertainty.

While Canada appears to have turned a corner after a difficult 2016, the report warns that the country could face a serious challenge as the population continues to age.

The Liberals won the 2015 election on a plan to spur economic growth by running annual deficits of no more than $10 billion over the first couple years to pay for infrastructure investments before balancing the books in 2019-20.

The Liberals abandoned those so-called "fiscal anchors" as the economy took a beating from collapsing oil prices in 2016, and haven't set a timeline for a return to balance.