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
Former prime minister Brian Mulroney dies at 84
Former Canadian prime minister and Conservative stalwart Brian Mulroney has died at age 84. Over his impressive career, the passionate and ambitious politician, businessman, husband, father, and grandfather left an unmistakable mark on the country.
Who is supporting, opposing new online harms bill?
Now that Prime Minister Justin Trudeau's sweeping online harms legislation is before Parliament, allowing key stakeholders, major platforms, and Canadians with direct personal experience with abuse to dig in and see what's being proposed, reaction is streaming in. CTVNews.ca has rounded up reaction, and here's how Bill C-63 is going over.
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.
The first public hearings on foreign interference in Canada have begun. What you need to know
The public hearings portion of the federal inquiry into foreign interference in Canadian elections and democratic institutions got underway this week. Heading into this process, here's what you need to know.
TREND LINE What Nanos' tracking tells us about Canadians' mood, party preference heading into 2024
Heading into a new year, Canadians aren't feeling overly optimistic about the direction the country is heading, with the number of voters indicating negative views about the federal government's performance at the highest in a decade, national tracking from Nanos Research shows.
Opinion
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.
opinion Don Martin: Pierre Poilievre's road to apparent victory will soon start to get rougher
Pierre Poilievre and his Conservatives appear to be on cruise control to a rendezvous with the leader's prime ministerial ambition, but in his latest column for CTVNews.ca, Don Martin questions whether the Conservative leader may be peaking too soon.
opinion Don Martin: The Trudeau lessons from Brian Mulroney's legacy start with walking away
Justin Trudeau should pay very close attention to the legacy treatment afforded former prime minister Brian Mulroney, who died on Thursday at age 84, writes columnist Don Martin.
opinion Don Martin: ArriveCan debacle may be even worse than we know from auditor's report
It's been 22 years since a former auditor general blasted the Chretien government after it 'broke just about every rule in the book' in handing out private sector contracts in the sponsorship scandal. In his column for CTVNews.ca, Don Martin says the book has been broken anew with everything that went on behind the scenes of the 'dreaded' ArriveCan app.
opinion Don Martin: Despite his horrible year, Trudeau's determined to roll the dice again
In his column for CTVNews.ca, political commentator Don Martin says you can't help but admire Justin Trudeau's defiance and audacity of hope despite his 'horrible' 2023, as it appears Trudeau is insisting on leading the Liberals into the next federal election.
CTVNews.ca Top Stories
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.
Woman, 18, killed by co-worker's vehicle on Highway 1 in Moose Jaw
Moose Jaw police say an 18-year-old woman who was at work has died from injuries she sustained in a collision with a vehicle being driven by her co-worker last Thursday.