MNI: Canada Scaling Back Covid Aid, Vows to Tackle Inflation

Canada's Liberal government opened a new session of Parliament Tuesday pledging to scale back Covid relief to hardest-hit industries, increasing carbon taxes and reintroducing legislation taxing large internet companies who use local content, and said fighting inflation is a key priority.

"At the height of the lockdowns, the Government made historic, necessary investments so families could keep paying the rent and small businesses could stay afloat," Governor General Mary Simon said while reading a ceremonial "Throne Speech" laying out government priorities.

"Now, with one of the most successful vaccination campaigns in the world, and employment back to pre-pandemic levels, the Government is moving to more targeted support, while prudently managing spending," she said. "To ensure no one is left behind, support will be extended or added for industries that continue to struggle."

"While Canada's economic performance is better than many of our partners, we must keep tackling the rising cost of living," Simon said. The government's new national childcare plan should save families thousands of dollars a year, and the government will also seek to reduce housing costs, the Throne Speech said.

Canada needs to focus on medium-term consolidation of its finances, a Moody's senior analyst told MNI. (Canada Needs Focus On Fiscal Slimdown)