Trudeau to Pile on Record Debt Steering Canada Out of Pandemic

Trudeau to Pile on Record Debt Steering Canada Out of Pandemic

Justin Trudeau is set to unveil a vision for Canada’s post-pandemic recovery that will double as election platform, heavy on new spending and assurances the mounting debt is affordable. The April 19 budget, the prime minister’s first full fiscal plan since before Covid-19 hit, is an opportunity to lay out longer-term aspirations he’ll be able to campaign on in a national vote that could see him regain his parliamentary majority. Trudeau’s government has signaled as much as C$100 billion ($80 billion) in additional money over the next three years for initiatives from childcare to green energy. Expectations are being set so high that an even more ambitious plan can’t be ruled out. Finance Minister Chrystia Freeland has described the budget as “among the most significant of our lifetime.”

It’s landing at a tense moment. The economy is healing faster than expected, but a recent surge in virus cases is forcing Canada’s largest province, Ontario, to impose the most stringent restrictions on movement yet. Delivery delays have plagued the nationwide vaccine effort. It’s landing at a tense moment. The economy is healing faster than expected, but a recent surge in virus cases is forcing Canada’s largest province, Ontario, to impose the most stringent restrictions on movement yet. Delivery delays have plagued the nationwide vaccine effort. The new spending will be on top of record levels of debt the nation is already taking on. Canada will likely report a budget deficit of C$363 billion, or 17% of gross domestic product, in the fiscal year that ended March 31, according to the federal spending watchdog. Another C$150 billion budget gap is projected this year, according to the average forecast from a Bloomberg survey of economists. By the time all the money is out the door, Trudeau will probably have accumulated more debt than all 22 prime ministers who preceded him combined. But he’s still betting Canadians are in the mood to think big.
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https://www.bnnbloomberg.ca/trudeau-to-pile-on-record-debt-steering-canada-out-of-pandemic-1.1591899
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