Photographer: Rene Johnston/Toronto Star via Getty Images

Infrastructure Delays Keep Canada's Spending Lagging Behind Budget Plans

Actual Canadian government spending is lagging behind planned outlays, in part because of delays in implementing infrastructure projects, the nation’s parliamentary watchdog said.

Total outlays for the fiscal year that began April 1 were up 3.7 percent from a year earlier to C$137 billion ($98 billion), the Parliamentary Budget Officer said in its Expenditure Monitor report, below the 5.6% spending increase that had been budgeted.

The report, which cited infrastructure spending that didn’t materialize, adds to evidence that Prime Minister Justin Trudeau’s stimulus measures won’t have the immediate benefits on the economy that policy makers -- including the Bank of Canada - - had initially assumed.

“As such, there is a growing risk that money the government originally expected to be spent in 2016-17 will be deferred to subsequent years,” the budget office report said.

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