The federal government ran a $12 billion deficit in July, according to new Treasury Department data, providing a sense of the fiscal landscape as the re-elected minority Liberal government faces calls from the premier and opposition parties for billions in new spending. have to do.
The Treasury Department’s monthly tracking of Ottawa’s bottom line shows that during the first four months of the fiscal year, from April 1 to the end of July, the government ran a total deficit of $48.5 billion.
Prime Minister Justin Trudeau’s Liberal government was re-elected at a forum on Monday with a minority mandate that included $78 billion in new spending, in addition to what was outlined in the April budget a few months ago.
Canadian Premiere Issued In a late Thursday joint statement in which he reinstated his “urgent” request for Ottawa to dramatically increase the size of the Canada Health Transfer, a recurring payment by the federal government to provinces and territories for use in funding health care.
“The Premiers urged the Prime Minister to hold the first Ministers meeting long, before the federal speech on unconditional health funding, and certainly by the end of the calendar year to address our long-standing funding crunch. health care system due to the lack of a true federal funding partner,” Premiers said in its statement.
Finance Minister Chrystia Freeland’s April budget estimated the federal deficit for the current fiscal year would be $154.7 billion, up from an estimated $354.2 billion last year, during the first waves of the pandemic.
The parliamentary budget official released a report in August ahead of the federal election campaign saying those estimates had changed little, and the deficit for the current fiscal year was on pace to come in at $138.2 billion.
Using the PBO’s estimates as a basis, the Liberal Party promised $78 billion in new spending over five years, bringing this year’s projected deficit to $156.9 billion.
Ms. Freeland is A financial update is expected to be released later this year that will outline how those campaign promises will be translated into official government policy.
The challenge for liberals is that the party would need the support of at least one of the three other main parties in the House of Commons – the Conservatives, the Bloc Québécois or the NDP – to gain parliamentary approval for trust votes in the regions. Like a government spending plan.
The NDP was a frequent ally of the Liberals for such votes in the previous Parliament. NDP leader Jagmeet Singh’s campaign platform called for $214 billion in new spending over five years, more than double what the liberals promised. Since the election, Mr Singh has said he would push liberals to adopt new taxes on corporations and the “ultra rich” as a way to offset the cost of spending related to the pandemic. The NDP leader has also said that pharmacare and child care are among his party’s priorities.
Bloc Quebec leader Yves-François Blanchett has said that his priority will be to advocate on behalf of calls by Quebec and other provinces for an immediate $28-billion annual increase in Canadian health transfers.
The Finance Department’s monthly report – called the Fiscal Monitor – notes that the economic outlook has improved significantly since last year, but challenges remain.
“As expected, the government’s financial results for 2021-22 reached at the beginning of 2020-21 were compared to the peak of the COVID-19 crisis and the unprecedented level of temporary COVID-19 response measures at that time. show a marked improvement,” says the report.
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