The federal government will not be able to meet one of its deficit reduction objectives for this year, confirmed Finance Minister Chrystia Freeland, who will unveil the fall economic statement on Monday.
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More precisely, Canada will not be able to keep the deficit below the threshold of $40 billion, although this is a target written in black and white in the budget tabled in April.
At a press conference Tuesday morning, Mme Freeland instead emphasized that the real fiscal anchor that matters for Canada is a declining debt-to-GDP ratio.
“It’s very important. “It’s a way of demonstrating that public finances are viable,” she declared. And this safeguard will be respected in the economic statement coming next Monday, she assured.
The minister did not reveal the height of the estimated deficit, but it is clear that the famous gifts of the GST holiday and the $250 check do not help the minister achieve her fiscal objectives.
These two measures alone are expected to cost public funds nearly $6.3 billion.
On this subject, the Globe & Mail reported Tuesday a dissension between the office of Prime Minister Justin Trudeau and the Minister of Finance over these measures.
M’s entourageme Freeland reportedly fought against these gifts, but it was Mr. Trudeau’s office that ultimately imposed its will.
A Léger poll published last week reported that the vast majority (71%) of Quebecers consider these two measures to be “electoralist”.
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