Liberals under pressure to balance competing asks in budget and economic update
The Trudeau Liberals are set to unveil an update on the health of federal finances and its outlook for the economy while facing competing demands on benefits, taxes and economic growth.
It's a tall order for a document that the Finance Department has signalled won't include a bevvy of new spending items.
The government outlined its major priorities in the spring budget, such as a national child-care system, said David Macdonald, senior economist with the Canadian Centre for Policy Alternatives.
From a political standpoint, the government doesn't have a lot of time before the holiday season to promote any new, major measures, Macdonald said. The government will likely wait for next year's budget for any big spending proposals, he said.
"I don't think that there's going to be a lot of actual new policy despite the fact we just had an election," Macdonald said.
"There's likely to be very little in there except the deficit figures are smaller, probably."
The government predicted the deficit for last fiscal year would be $354.2 billion, and nearly $155 billion this year. But federal books could have as much as $10 billion in extra fiscal space helped by higher oil prices, which have also helped push up inflation rates.
Inflation rates that have hit 18-year highs, along with strong growth in employment and the domestic economy, could cause the government to ease up on its platform spending plans, said Stephen Brown, senior Canada economist with Capital Economics.
In a note, Brown wrote that extra spending seems more likely to push up inflation by the time any changes take effect.
"It will be more interesting to see if the government follows through with its myriad policy proposals for the housing market, which included a ban on purchases by foreign investors," he wrote.
Finance Minister Chrystia Freeland suggested this week that the document would give an outlook on the path of this year's deficit, and an accounting of new aid proposals that the government estimated to cost $7.4 billion.
Some of those calculations have to do with the effect the Omicron variant may have on case counts, and any subsequent need to tighten public health measures or impose lockdowns to slow the spread of the virus.
Bea Bruske, president of the Canadian Labour Congress, urged Freeland to use the document to spend more on benefits, saying in a statement that there are still thousands of workers who are facing financial uncertainty because of COVID-19.
She also suggested the government could use the document to outline its proposed changes to the employment insurance system, whose long-known shortcomings were exposed by the pandemic.
"The fiscal update must make clear that the federal government is prepared to make investments to make life more affordable and ensure vital services, like EI, are there for people when they need it," Bruske said.
The Chartered Professional Accountants of Canada said Friday that the government could use the update to detail previously announced tax proposals that are supposed to kick in next year, including one on purchases of luxury cars, planes and yachts, and another on foreign-owned vacant homes.
"Some of the changes are supposed to apply in less than a month," said Bruce Ball, CPA Canada's vice-president, taxation.
"We're looking for some clarity in terms of how that's going to happen and also some reasonable time frames to allow consultation on the things that are still very conceptual and ... time for businesses to adjust."
This report by The Canadian Press was first published Dec. 12, 2021.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Boy abducted from California in 1951 at age 6 found alive on East Coast more than 70 years later
Luis Armando Albino was six years old in 1951 when he was abducted while playing at an Oakland, Calif., park. Now, more than seven decades later, Albino has been found thanks to help from an online ancestry test, old photos and newspaper clippings.
Trudeau tells world leaders they 'have a responsibility' at UN Summit of the Future
Prime Minister Justin Trudeau told delegates at the United Nations the world is at a global inflection point, having a choice between walking away from multilateralism or setting differences aside to confront serious global challenges.
An Edmonton man says he was in the wrong place at the wrong time when he was injured by members of the Edmonton Police Service last year.
The brother of a 27-year-old man who was fatally shot in Scarborough over the weekend has been arrested and charged in connection with his death, say police.
White Sox lose 120th game to tie post-1900 record by the 1962 expansion New York Mets
After Sunday's loss, the White Sox are 36-120 with six regular-season games to go in 2024.
Kate, the Princess of Wales, makes first public appearance after cancer treatment
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
Air Canada union head says she'll resign if pilots reject deal
The head of the Air Canada pilots union says she'll step down if members opt not to approve a tentative deal with the airline, raising the stakes as aviators mull whether to accept hefty salary gains or drive an even harder bargain.
John Mulaney and Olivia Munn have second child, a daughter named Mei
Comedian John Mulaney and actor Olivia Munn now have a second child, a daughter named Mei June Mulaney.
Ontario's police watchdog has decided there are no grounds to believe Sudbury police committed a crime during a difficult arrest in May where the suspect's neck was broken.
Local Spotlight
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.