Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Trudeau to Detail Second-Term Fiscal Starting Point on Monday

Published 13/12/2019, 21:53
© Reuters.  Trudeau to Detail Second-Term Fiscal Starting Point on Monday

(Bloomberg) -- Justin Trudeau’s finance chief will deliver a budget update Monday that will outline the fiscal framework the Canadian prime minister’s government will be using in its second term.

Finance Minister Bill Morneau confirmed the release in a statement on Twitter. The fiscal update will be released in the morning on Dec. 16 just before 11 a.m. Ottawa time, and will simply be an update of economic and fiscal numbers, a person familiar with the plan said. It comes after an election campaign in October that saw the Liberals retain power, but lose their majority in parliament.

The parliamentary budget watchdog estimated after the election that the government’s deficits will rise to C$21.1 billion ($16 billion) this year and C$23.3 billion in 2020, from C$14 billion in 2018, even before taking into account the new measures Trudeau promised during the campaign. The Liberals had said they anticipate the budget deficit will jump to about C$27 billion in 2020 once new tax cuts and spending are introduced, exceeding 1% of gross domestic product for the first time since 2012.

One measure that may be incorporated into Monday’s budget update will be the Liberal government’s latest personal income tax cut. Morneau introduced a motion in parliament this week to indicate his intentions to move ahead with the cut, which gradually raises the basic income tax deduction.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.