Booming Canada Lets Trudeau Spend a Bit More to Fight Anxiety

  • Deficit forecast cut to C$19.9 billion from C$28.5 billion
  • Finance Minister sees resilient economy, more ‘balanced’ risk

Canada's Morneau on Recession Risks, Nafta Talks

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A strong economy has helped Prime Minister Justin Trudeau whittle down Canada’s projected budget deficit, providing enough wiggle room to boost transfers to low-income Canadians.

The Liberal government cut its deficit projectionBloomberg Terminal for the fiscal year ending March 31 to C$19.9 billion ($15.7 billion), down from C$28.5 billion in the March budget, figures released Tuesday show. It also introduced C$7.7 billion of new spending over six years.