Finance Minister Chrystia Freeland plans to release an updated federal finance accounting today and provide the government’s economic outlook for the coming months.
The government predicted that the deficit for the last fiscal year would be $ 354.2 billion and almost $ 155 billion this year.
But the federal books could have billions more in additional fiscal space helped by higher oil prices, which have also helped drive up inflation rates.
Freeland did not directly respond to a question Monday about how that will be reflected in today’s update, saying he would have more to say once the document is released.
While the Liberals promised billions in new campaign spending, the Finance Department has sent signals that the update will not have a long list of new spending measures.
A measure was unveiled on Monday, when the government set aside $ 40 billion to compensate First Nations children and undertake long-term reforms to the child welfare system.
Economists suggest that some promised expenditures could be delayed because inflationary pressures could increase.
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While the Bank of Canada is mandated to keep inflation under control, the government agreed on Monday that it plays a role in helping the central bank keep inflation around its two percent target.
BMO Canadian rate director Benjamin Reitzes said the wording could be a sign that the government recognizes it is time to cut its stimulus spending a bit.
Freeland faces calls for more spending on benefits from labor groups and calls from business groups for a plan to address supply chain problems, “Buy American Goods” provisions pushed by the White House and a national labor shortage.
#Liberals ready to publish updates on federal finances, outlook for the #Canadian economy. #CDNPoli
Dennis Darby, president of Canadian Manufacturers and Exporters, says the problems could weaken the COVID-19 economic rebound.
This Canadian Press report was first published on December 14, 2021.
Reference-www.nationalobserver.com