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Canadian government to present mini budget on Dec. 16
The mid-fiscal-year mini budget will be presented later than usual due to gridlock in parliamentary proceedings, Finance Minister Chrystia Freeland said last week.
Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland presents the federal government budget for fiscal year 2024-25, in the House of Commons on Parliament Hill in Ottawa, Ontario, Canada, April 16, 2024. / Reuters/Patrick Doyle
OTTAWA (Reuters) - The Canadian government will present its fall economic statement on Dec. 16, the finance ministry said on Dec.9, announcing a date for the budget update that will show the government's revised deficit estimate.
The mid-fiscal-year mini budget will be presented later than usual due to gridlock in parliamentary proceedings, Finance Minister Chrystia Freeland said last week, adding that the mini budget will have details of spending and fiscal anchors.
"Our government is focused on delivering fairness for every generation ... I look forward to presenting the next steps in our economic plan to deliver a good middle class life for everyone," Freeland said in a statement on Dec.9.
The mini budget will come at a time of increased uncertainty about the future of Prime Minister Justin Trudeau's minority government since losing the support of the New Democratic Party and a threat of tariffs from U.S. President-elect Donald Trump. An election is due by late October 2025.
The budget update may contain spending measures to shore up Canada's border with the United States, which Trudeau promised Trump at a surprise meeting between the two in Florida in late November.
Freeland, after postponing the government's debt-reduction goals twice in 2023, promised a 2023-24 deficit at or below C$40.1 billion ($28.36 billion), to reduce the debt-to-GDP ratio, and to keep the deficit-to-GDP ratio below 1 percent by 2026-27 and beyond.
Some economists have said the targets are precarious as growth slows and spending temptations increase in an election year.
"Canada faces significant economic and fiscal challenges, including low innovation and productivity, an aging population, and geopolitical pressures that could disrupt trade flows. In this environment, fiscal prudence is essential," Business Council of Canada senior vice president Robert Asselin said in a statement.
"The government must use the December 16th Fall Economic Statement to prioritize effectively and adopt greater fiscal discipline," Asselin said.
Trudeau's Liberal government, trailing opposition Conservatives in polls over issues including the cost of living, has already survived two confidence votes, and measures in the mini budget could present his rivals another opportunity to bring him down.
Freeland's mini budget will coincide with Bank of Canada Governor Tiff Macklem's annual address to Canadians.
Macklem is expected to speak about progress in bringing inflation back to target and new challenges on the horizon in a speech at the Greater Vancouver Board of Trade at 12:35 p.m. (2030 GMT) on the same day.
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