Economics

Trudeau’s Pre-Election Bet Hinges on Fast Growth, Low Inflation

Government sees Canadians in mood for big social spending
Budget deficit forecast to drop to 6.4% of GDP this year

Justin Trudeau and Chrystia Freeland before tabling the federal budget at the House of Commons in Ottawa on April 19.Photographer: David Kawai/Bloomberg

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By Kait Bolongaro

April 19, 2021 at 8:07 PM UTC

Updated on

April 20, 2021 at 1:51 AM UTC

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Justin Trudeau’s government released a budget that promises big spending on new social programs and a return to small deficits by 2025, setting the stage for a possible election in Canada this year.

After running one of the largest shortfalls of any developed country last year, Finance Minister Chrystia Freeland outlined plans Monday for a national childcare program, the centerpiece of C$101 billion ($80.6 billion) in new policy actions over the next three years. The budget also includes extensions of pandemic-relief programs as well as more cash for pensioners, low-income workers, subsidies for businesses, help for students, and billions for health care -- more than 200 new measures in all.