Will JT throw Canada's support behind the ring to help derisk it.... and actually spend money on something to replace the floundering oil/gas industry that will earn GDP for over a century?
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https://www.bnnbloomberg.ca/trudeau-to-pledge-40-billion-of-spending-amid-election-fight-1.1646522?taid=612f4bed83f87b00013c966b&utm_campaign=trueAnthem+Manual&utm_medium=trueAnthem&utm_source=twitter
Trudeau to pledge $50 billion of spending amid election fight
Theophilos Argitis, Bloomberg News
Canadian Prime Minister Justin Trudeau is set to release an election campaign platform promising tens billions in spending on new initiatives that would be fully financed by a tax revenue windfall from an expanding economy.
The document, to be released on Wednesday, will include measures of at least $50 billion (US$39.6 billion) over the next five years, some of which have already been announced, according to an official with Trudeau’s Liberal Party, speaking on condition they not be identified because the platform has not yet been released.
Even with the new spending, Trudeau’s party is promising a downward trajectory in Canada’s debt levels because revenue is seen coming in much stronger than what was projected in Finance Minister Chrystia Freeland’s budget in April, the person said.
Canadians will vote on Sept. 20. Polls show the Liberals in a tough fight to stay in power, in a statistical tie with the main opposition Conservative Party.
The governing party is using economic baseline projections provided by the Parliamentary Budget Office to all parties on Aug. 16. The budget watchdog believes Canada’s economy will be just over C$100 billion larger per year than what had been forecast in Freeland’s fiscal plan, with tax revenue coming in about$15 billion higher annually.
That would more than offset the $10 billion annual cost of the Liberal platform. The official said the platform will include a “risk adjustment buffer” on top of the new spending in case the economic outlook deteriorates.
Freeland’s budget projected a $155 billion deficit in the current year, or about 6.4 per cent of gross domestic product. That could shrink to 1.3 per cent of GDP in four years, the government projected in April.
The federal debt-to-GDP ratio is expected to peak at 51.2 per cent this year, then fall to 49.2 per cent within about five years. Before the pandemic, it was around 31 per cent.
