FISCAL VIEW: Liberal Prime Minister Justin...>

CANADA: FISCAL VIEW: Liberal Prime Minister Justin Trudeau's minority government

will likely boost deficits to the "mid-$20 billion range" from $14b last year,

RBC economists predict.

-Trudeau's Liberals lost majority in Oct. 21 election and need opposition

support to pass budgets and other confidence votes. NDP and Bloc opposition

parties likely to seek more spending.

-Bond market impact likely limited by favorable global comparison with Canada's

triple-A credit rating, historically low government bond yields this year.

-Finance Department Friday said Apr-Aug saw $5.2 billion deficit vs. $2.6b

surplus in year earlier period. Spending +9.1% YOY, revenues +2.9% YOY.

-Any extra fiscal stimulus won't be enough alter BOC view on economy, Scotiabank

says.