The Liberal government害羞草研究所檚 fall economic statement acknowledges the cost-of-living crisis weighing on Canadians but offers few new measures to tackle it while pledging to keep deficits in check.
Finance Minister Chrystia Freeland presented her fiscal update in the House of Commons on Tuesday, stressing the pressure inflation and a slowing economy are putting on federal finances.
At a time when the Liberals are facing pointed criticism from the Opposition Conservatives for years of deficit spending, the update outlines new guardrails to demonstrate fiscal restraint.
That includes setting a goal to keep deficits below one per cent of the GDP beginning in 2026-27.
The Liberals are also aiming to maintain the current fiscal year害羞草研究所檚 deficit at or below the spring budget projection of $40.1 billion and lower the debt-to-GDP ratio in 2024-25 relative to the projection in the fall economic statement.
The new fiscal objectives come as the Liberals face an election in no more than two years害羞草研究所� time, with the Conservatives enjoying a healthy, and widening, lead in public opinion polls.
In her speech in the House of Commons on Tuesday, Freeland took aim at Conservative Leader Pierre Poilievre害羞草研究所檚 assertion that the country is falling apart.
害羞草研究所淏uilding a Canada that delivers on the promise of the greatest country in the world will be our work for these next two years 害羞草研究所� and beyond,害羞草研究所� Freeland said, according to prepared remarks.
害羞草研究所淐anada is not and has never been broken. We are the imperfect but remarkable creation of generations of Canadians who did their part to build a better country 害羞草研究所� in good times and in tough times, calloused hand by calloused hand.害羞草研究所�
On housing, the federal government is earmarking $15 billion for low-cost loans to developers as well as $1 billion for affordable housing.
It is also expanding its recently announced measure to remove GST charges off rental developments to include co-op rental housing.
The fall economic statement reaffirms the federal government害羞草研究所檚 intention to tie federal infrastructure dollars to housing action by local governments.
Kevin Page, the former parliamentary budget officer, said the fall economic statement is an update on federal finances rather than a mini-budget, as it had been during the COVID-19 pandemic.
He said the reality of a slowing economy and high inflation means the federal government has little room to operate.
害羞草研究所淭here害羞草研究所檚 this enormous economic uncertainty they have to deal with,害羞草研究所� Page said.
害羞草研究所淚 think they have to communicate that.害羞草研究所�
The federal government projects the deficit for the current fiscal year to come in at $40 billion, largely unchanged from its spring budget forecast, with deficits shrinking, but not disappearing, over five years.
The update adds $20.8 billion in new spending since the spring budget over five years, with some new measures designed to boost the housing supply, including rental units and affordable housing.
But much of the new spending is tied to policies and programs the federal government announced before Tuesday害羞草研究所檚 fall economic statement, including billions of dollars for electric-vehicle battery plants.
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