OTTAWA -- Finance Minister Bill Morneau will present the federal government's second budget Wednesday amid signs the Canadian economy is picking up. From retail sales to the unemployment rate, it seems the picture is brighter than even a few months ago when Morneau tabled his fall economic update.

Prime Minister Justin Trudeau's government has hinted at that optimism, or at least at its desire for Canadians to feel more optimistic, with Social Development Minister Jean-Yves Duclos telling journalists at a pre-budget briefing a few weeks ago that confidence, growth and the middle class are linked.

"It's been shown repeatedly, in various studies, that the backbone of past growth and certainly of future growth will be the ability of the middle class to invest in itself," Duclos said on March 10.

Morneau has been clear that Budget 2017 will focus on innovation and skills. But questions remain from his first budget, including how to get more infrastructure spending out the door and whether the recent economic growth will help limit a deficit projected a few months ago to hit almost $28 billion over the next year (it's also projected to drop to $14.6 billion a couple of years after the current government's term ends, though a Finance Canada analysis projected deficits until 2050, with debt doubling from its current level).

Here are five things to watch for in Budget 2017.

References to our neighbours to the south

It's hard to escape news about the new American administration, led by President Donald Trump. It's equally hard to predict where this unorthodox politician will take his country -- and the impact it could have on Canada -- but the possibilities include a border adjustment tax, which could stifle Canadian exports, and Buy American provisions for the Keystone XL pipeline. Renegotiating NAFTA is a certainty, though it's unclear how broadly those talks will affect the Canadian economy.

The federal budget is likely to take this into account. Morneau is expected to pull his punches, keeping some budget measures in reserve for next fall's economic update.

Tax changes

According to one rumour, the government is considering raising the capital gains tax to increase its revenue. Analysts from major financial institutions have said they're fielding questions from concerned investors, though that doesn't necessarily mean it's something the Liberals have planned. Still, many will be watching the budget to see if they're affected.

A capital gains tax is tax on income earned from selling property or investments not held in a registered account like an RRSP or TFSA. The current rate is 50 per cent, with speculation the Liberals could increase it to 75 per cent. The theory is that would fit with the government's focus on lowering taxes for the middle class while raising them for the top one per cent of income earners.

Interim Conservative leader Rona Ambrose voiced alarm Tuesday over the possibility of any tax increases.

"Conservatives will continue to be the voice of the taxpayer and we're not going to stay silent as the prime minister continues to raise taxes on Canadians," she said.

"Ordinary Canadians are tired of feeling like they're being nickel-and-dimed by this government and by this prime minister."

Privately run airports

Much of the speculation over the budget has been whether Morneau will sell any of Canada's major airports, which are now run by non-profit airport authorities that pay rent to the federal government. Airport sales would raise billions for the cash-strapped government, but critics say they could raise the cost of travel if the new owners raise prices and fees to increase profits.

Ambrose reeled off a list of questions for which she'd like answers before deciding whether selling off airports is smart.

"What are the terms and conditions? What is the profit margin that [buyers are] looking for to be able to justify this purchase to their shareholders? Is the government considering going in on the sale? Are taxpayers actually going to be footing the bill for a private-sector transaction that will benefit the shareholders of an investment firm? Where's the benefit to Canadians? Where's the benefit to taxpayers? We have no transparency around this," Ambrose said Tuesday morning in the foyer outside the House of Commons.

Social housing

The Liberals pledged during the election to spend an additional $60 billion over 10 years on infrastructure, and in last fall's economic update committed to $81 billion over 11 years in infrastructure funding. That cash, however, was backloaded, with funding to start in 2018.

Social housing is expected to get a boost from this budget, with $11 billion an oft-cited number. How far it stretches will depend on what exactly it's to be used for: renovations alone, programming and new construction are all areas in need of more money.

Edmonton Mayor Don Iveson says Canada's mayors estimated they need $12.6 billion over eight years just to fix existing housing units badly in need of repair.

"That's the biggest investment. Plus a needed investment in growing the number of social housing units across the country," Iveson, chair of the Federation of Canadian Municipalities big city mayors' caucus, told CTV News.

"That takes up most of the ask, so if we're under on that or if the money's spread out over a longer period of time, then that will just reduce our ability to catch up on a huge, huge backlog of work in both growth of units and repair of existing social housing units that house some of the most vulnerable Canadians."

Continued emphasis on gender equality

The government pledged in last fall's economic update to run a gender-based analysis on all future budgets. The idea is to examine how a policy decision's impact is different for women. Exactly what kind of impact that analysis has, and how it's presented in the budget, will draw considerable attention from stakeholder groups.

Duclos, whose portfolio includes housing and child care, said the government is sensitive to economic and social inclusion.

"Gender is, for all sorts of reasons, one characteristic that sometimes makes it difficult for Canadians to feel able to participate fully in their communities," he said.

Referring to his portfolio, Duclos said housing is one way to get around that challenge.

"Investments in housing will make a big difference in the ability of Canadian women to live well," he said.