All eyes were on Ottawa this week as the new government unveiled its first budget.
Deficits of roughly $30 billion are due in coming years, with about half the borrowing resulting from new government spending plans:
~ In addition to tax changes and the new Canada Child Benefit, sizeable spending is planned for affordable and seniors’ housing, federal infrastructure, indigenous peoples, and public transit. These commitments total more than $27 billion over two years.
~ Government spending, together with robust near-term economic momentum, have led us to upgrade our growth outlook for Canada. Real GDP is expected to grow by 1.9% this year, ticking up to 2.0% growth in 2017.