Finance Minster Chrystia Freeland's spring budget projected a CAD39.8 billion deficit in the fiscal year that began April 1, or 1.3% of GDP, pledging another new fiscal anchor of keeping the shortfall below CAD40 billion. Experts have told MNI that with an election late next year, the Liberals may bring in major new spending in next year's pre-election budget or perhaps in a fiscal update due in the fall.
Justin Trudeau's Liberals have already faced two nonconfidence votes this week and the Bloc Quebecois has demanded an expansion to seniors' benefits costing CAD16 billion over five years, setting an Oct. 29 deadline to put that into law. (See: MNI INTERVIEW: Trudeau Deficit Cap Strained By Election Threat)
For the month of July the deficit was CAD4.4 billion compared with a CAD4.9 billion a year earlier.
