14 Dec 2021
Canada to Outline New Forecasts and Fiscal Situation as Inflation Surges
The Index Today
Canada’s Prime Minister Justin Trudeau is about to outline new fiscal and economic forecasts in a document that will be released tomorrow on Tuesday amid the rising inflation and spending reticence call from some business groups and opposition politicians.
A source told Reuters last week that the fall economic update (FES) will be released at 4 p.m. ET (1900 GMT) and is likely to include some new spending as well. The FES will be "limited in scope" in terms of expenditure.
Trudeau recently pledged C$78 billion ($61 billion) in a new investment over five years to support Canada's economic rebound during the campaign ahead of his September re-election.
Tony Stillo, director of Canada economics at Oxford Economics said, "My reading of the tea leaves would be: Even if the fiscal statement is light, it doesn't mean that the upcoming budget will be."
The government is expected to release its 2022-23 fiscal-year budget during the first part of next year. This fiscal year's budget included C$101 billion in investments over three years. Business lobbies and the opposition Conservative Party have urged the government to scale back spending after inflation hit an 18-year high. This is also because the costs to service the country's debt are expected to start rising next year, Reuters report added.