Trudeau Government Has Likely Blown Past Fiscal Anchor

Facing pressure from economists to restrain government spending, Canada’s Finance Minister promised to hold the FY2023-24 deficit below C$40.1 billion, but the country’s parliamentary budget officer now expects to run a C$46.8 billion deficit this fiscal year.

By Erik Hertzberg | November 19, 2024 at 04:06 PM

Canada’s budgetary watchdog says Justin Trudeau’s government has likely blown past a self-imposed fiscal guardrail, and is warning about the consequences of delaying the release of final spending and revenue numbers. Yves Giroux, the country’s parliamentary budget officer, expects the federal government ran a deficit of C$46.8 billion in fiscal year 2023-24. That’s deeper than the C$40 billion forecast by Finance Minister Chrystia Freeland in the April budget, and would break a key fiscal pledge she’s offered as evidence of her party’s spending discipline.

The government has until the end of the year to provide the numbers, but usually releases them in October, as it did last year. The delay raises questions about whether the numbers are worse than expected, which would add complications for Trudeau as his party struggles to regain traction with the electorate.

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Trudeau Government Has Likely Blown Past Fiscal Anchor

Facing pressure from economists to restrain government spending, Canada’s Finance Minister promised to hold the FY2023-24 deficit below C$40.1 billion, but the country’s parliamentary budget officer now expects to run a C$46.8 billion deficit this fiscal year.

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Trudeau Government Has Likely Blown Past Fiscal Anchor

Facing pressure from economists to restrain government spending, Canada’s Finance Minister promised to hold the FY2023-24 deficit below C$40.1 billion, but the country’s parliamentary budget officer now expects to run a C$46.8 billion deficit this fiscal year.

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