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Trudeau’s Deficit Spending Wins Poloz’s Praise as ‘Sustainable’

  • Budget gets nod from ex-central banker for avoiding tax hike
  • Carney, Dodge question fiscal plan’s ability to propel growth
Stephen Poloz was governor of the Bank of Canada when the Covid-19 crisis hit.
Stephen Poloz was governor of the Bank of Canada when the Covid-19 crisis hit.Photographer: Cole Burston/Bloomberg

Justin Trudeau’s debt-financed spending plan earned a stamp of approval from at least one former Bank of Canada governor amid a simmering debate over whether the budget can propel long-term growth.

Stephen Poloz, whose term as the nation’s central bank chief ended last June, said in an interview that he believes the government produced a sustainable fiscal plan that addresses pandemic-related needs, while avoiding major new taxes.