A strong economy has helped Prime Minister Justin Trudeau whittle down Canada’s projected budget deficit, providing enough wiggle room to boost transfers to low-income Canadians.
The Liberal government cut its deficit projection for the fiscal year ending March 31 to C$19.9 billion ($15.7 billion), down from C$28.5 billion in the March budget, figures released Tuesday show. It also introduced C$7.7 billion of new spending over six years.
Canada’s economy is expanding faster than any country in the Group of Seven, and is projected to grow 2 percent on average over the next five years, up from the previous estimate of 1.8 percent. Despite the new spending measures, government expenditure as a share of the economy is still projected to fall as Trudeau moves to offset austerity by boosting transfers to lower-income earners.
“What you saw in Canada, not unique to industrialized countries, was a sense that people were concerned they were falling behind,” Finance Minister …
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