Economics
Trudeau Set to Tap Canada Budget Reserves Amid Dismal Growth
- Government preparing for next budget as outlook deteriorates
- Latest projections show C$50 billion less output over 2 years
Trudeau Set to Tap Budget Reserves Amid Dismal Growth
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Canadian Prime Minister Justin Trudeau’s fiscal leeway is shrinking just as demands for spending are beginning to mount.
The finance department has completed its latest survey of private sector economists and the numbers paint a worsening picture for national income and revenue. Compared with forecasts they gave for the March budget, the economists project almost C$50 billion ($38 billion) less in nominal output -- the best indicator of revenue -- over the next two years. That’s a markdown of more than 1 percent off Canada’s C$2 trillion economy.