The federal government’s economic outlook is based on the forecasts of economists at 13 financial institutions and research outfits. The average of their forecasts sees economic growth of 3.9 per cent in 2022 and 3.1 per cent in 2023, and a jobless rate of about 5.5 per cent over the next two years, which would be historically low.
The combination of inflation and stronger corporate profits left Finance Minister Chrystia Freeland with about $41 billion in unexpected revenue over the next five years. She resisted the urge to spend all of it. Theto $114 billion in the fiscal year that ended March 31, and will drop to $53 billion this year – on its way to $8.4 billion in 2027.
Freeland’s “fiscal anchor” is a promise to keep debt as a percentage of GDP on a downward track. Her outlook achieves that commitment, although probably not as forcefully as some of her critics would like. The debt is currently about 46.5 per cent of GDP. The budget predicts it will slowly decline to 41.5 per cent of GDP over the next five years. The government is counting on a growing economy to keep the debt burden in check: in nominal terms, the debt is projected to rise to $1.
Read, “Liberals chalk up $53B budget deficit and pare back campaign promises amid global ‘uncertainty.'”Ottawa took aim at Canada’s housing crisis with a $10-billion, three-pronged strategy that includes cracking down on speculators, aid for first-time homebuyers, and programs to increase supply. One measure would prohibit foreign companies and non-Canadians from buying non-recreational residential property in Canada for two years. The budget also contains new rules to discourage property flipping.
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