Free Trial
JGB TECHS

(U2) Off Lows, But Still Fragile

AUSSIE BONDS

A Little Firmer

NZD

Recent Cyclical Lows Are In Sight

US TSYS

Breakevens Support The Bid On Wednesday

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI: Canada Trims Deficit, Spends Over Half Recovery Windfall

(MNI) Ottawa
OTTAWA (MNI)

Freeland balances political pledges to spend against inflation warnings.

Canada's Liberal Finance Minister Chrystia Freeland pared deficit projections while spending more than half the windfall from an economic rebound to fund election promises and backstop a deal with the left-leaning NDP in a budget presented Thursday.

The CAD52.8 billion deficit for the fiscal year that opened April 1 is equal to 2% of GDP, and the budget remains in deficit through the projection period ending in 2026-27 when it narrows to 0.3% of GDP. Federal debt as a percentage of GDP, the lone "fiscal anchor" the government has stuck to since coming to power in 2015, is seen steadily declining from 45.1% to 41.5% from this fiscal year to 2026-27. It was 31.2% before Covid.

Keep reading...Show less
562 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Canada's Liberal Finance Minister Chrystia Freeland pared deficit projections while spending more than half the windfall from an economic rebound to fund election promises and backstop a deal with the left-leaning NDP in a budget presented Thursday.

The CAD52.8 billion deficit for the fiscal year that opened April 1 is equal to 2% of GDP, and the budget remains in deficit through the projection period ending in 2026-27 when it narrows to 0.3% of GDP. Federal debt as a percentage of GDP, the lone "fiscal anchor" the government has stuck to since coming to power in 2015, is seen steadily declining from 45.1% to 41.5% from this fiscal year to 2026-27. It was 31.2% before Covid.

Keep reading...Show less