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MNI Canada Budget Preview - Spending Pledges Watched

Credit: Bank of Canada

EXECUTIVE SUMMARY

  • The government is expected to push ahead with both election and NDP deal pledges as it makes the most of faster than anticipated nominal growth to help offset the additional spending.
  • This should see broadly similar paths for the budget deficit and debt over the near-term compared to those in the December Economic and Fiscal Update, but the pace of fiscal consolidation could slow thereafter.
  • Gross bond issuance for FY23 is seen between C$200B-C$238B by CIBC and TD.

PLEASE SEE THE FULL NOTE AT THE FOLLOWING LINK:

Canada Budget Preview Apr-2022.pdf

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