Hope for Balanced Budget Fades in Canada

In budget information released under recently elected Canadian Prime Minister Justin Trudeau, the country is hearing its goal of a balanced budget in 2019 likely will not be realized.

Finance Minister Bill Morneau has said because of circumstances such as slower-than-expected growth and collapsing oil prices, he forecasts deficits to exceed earlier projections. The promise of limiting the deficit to $10 billion will not be realized. In fact, the revised deficit projection for 2017-18 is $15.5 billion. This does not factor in the cost of Trudeau’s campaign commitments.

Those campaign commitments are focused on investing in infrastructure and putting “more money in the pockets of hard-working families,” Trudeau said in a press briefing, “because we know when middle-class Canadians have more money to save, invest, and grow the economy, all of Canada benefits.”  Trudeau said the budget cultivates long-term growth.

“A balanced budget remains our fiscal objective,” said Liberal lawmaker Steven MacKinnon. “It’s important, while respecting our spending commitments, to have a credible plan to get back to zero.” 

Sources: Bloomberg, Huffington Post S