With inflation pressures rising, Liberals to give budget update on Dec. 14
Canadians will soon get an update on the health of federal finances and the government's outlook for an economy facing high inflation rates, flooding in British Columbia and the emergence of a new variant of COVID-19.
Finance Minister Chrystia Freeland will deliver the update on Dec. 14, just three days before MPs are scheduled to leave Ottawa for a winter break.
Federal finances have taken a beating during the pandemic as the treasury pumps out unprecedented aid. The government predicted the deficit for last fiscal year would be $354.2 billion, and nearly $155 billion this year.
Higher oil prices among other economic factors are expected to pad the government's bottom line. UBC economist Kevin Milligan estimated the extra wiggle room could be as much as $10 billion, giving the Liberals some budgetary breathing room just past the midway point of the fiscal year.
"Our government's focus is to finish the fight against COVID and to support our recovery from the COVID recession," Freeland said in the House of Commons on Thursday "We know it's important to Canadians that we are careful and transparent with our nation's finances."
Shortly after Freeland spoke, MPs voted to send the Liberals' latest aid package for a committee review, likely on Monday.
Freeland will face a two-hour grilling on the $7.4-billion plan to provide support for workers affected by lockdowns, and targeted help to the hardest hit businesses.
Politically, the New Democrats are looking for more spending on aid to workers after benefits were cut off, with deputy leader Alexandre Boulerice chiding the Liberals for being "completely out of touch" with the needs of Canadians.
Conservative finance critic Pierre Poilievre chided the government for releasing an economic update with only a few days for it to be scrutinized in the House of Commons, and said his party wants the Liberals to reduce spending to pre-pandemic levels to help with cost of living concerns.
The Liberals have promised to spend $100 billion in stimulus, and pledged billions more in the election campaign, which has stoked warnings from experts that too much spending could fan inflation by increasing consumer demand at a time when the supply of goods can't keep up.
"It seems to me that you combine this with all the savings Canadians have right now and that's a lot of money in the economy in the short-term," said Robert Asselin, senior vice-president of policy at the Business Council of Canada and a former Liberal budget chief.
"You just want to be careful not to fuel more consumption, more demand, and make inflation worse."
Rebekah Young, Scotiabank's director of fiscal and provincial economics, said it would make sense to hold back on unleashing major parts of the extra $53 billion in net new spending pledged on the campaign trail, at least for now until inflation rates start coming down.
"I expect this spending still has a good chance of seeing the light of day, just not before the holidays," Young said.
She said messages coming out of the Finance Department point to a minimalist update instead of one with many new spending measures.
In place of spending, the Liberals are being asked for details about how to tackle supply-chain issues that have helped send the inflation rate to an 18-year high, which wasn't in the government's outlook in the spring budget.
"It's important for them to set out what their strategy is to deal with these changed circumstances," said Perrin Beatty, president of the Canadian Chamber of Commerce.
The government's response to inflation has been to point to its national child-care strategy, which aims by next year to lower rates by half on average, and its promises to spend more to make housing more affordable.
Asselin said the child care spending, while helpful, won't address the scale of inflation issues now. He also said the Liberals may not be able to address many of the vulnerabilities in the housing sector, noting there is little the government can do once you own a house and have a mortgage.
Milligan, in an analysis for the C.D. Howe Institute, suggested the government not add too much debt to "preserve borrowing capacity for future crises" and prepare for extra costs associated with an aging population.
This report by The Canadian Press was first published Dec. 2, 2021.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Manitoba mom praises quick-thinking fire department for freeing daughter stuck in playground equipment
A Manitoba mother is praising firefighters for their quick work in helping her daughter who got stuck at a playground in Lorette, Man.
The Body Shop Canada explores sale as demand outpaces inventory: court filing
The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with "robust" sales after announcing it would file for creditor protection and close 33 stores.
Local Spotlight
UBC football star turning heads in lead up to NFL draft
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Cat found at Pearson airport 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly on a mission: N.S. student collecting books about women in sport for school library
Molly Knight, a grade four student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
Marmot in the city: New resident of North Vancouver's Lower Lonsdale a 'rock star rodent'
When Les Robertson was walking home from the gym in North Vancouver's Lower Lonsdale neighbourhood three weeks ago, he did a double take. Standing near a burrow it had dug in a vacant lot near East 1st Street and St. Georges Avenue was a yellow-bellied marmot.
Relocated seal returns to Greater Victoria after 'astonishing' 204-kilometre trek
A moulting seal who was relocated after drawing daily crowds of onlookers in Greater Victoria has made a surprise return, after what officials described as an 'astonishing' six-day journey.
Ottawa barber shop steps away from Parliament Hill marks 100 years in business
Just steps from Parliament Hill is a barber shop that for the last 100 years has catered to everyone from prime ministers to tourists.
'It was a special game': Edmonton pinball player celebrates high score and shout out from game designer
A high score on a Foo Fighters pinball machine has Edmonton player Dave Formenti on a high.
'How much time do we have?': 'Contamination' in Prairie groundwater identified
A compound used to treat sour gas that's been linked to fertility issues in cattle has been found throughout groundwater in the Prairies, according to a new study.