Tax & Spend
Trudeau Urged to ‘Hold the Line’ on Spending as Recession Looms
- Freeland’s budget update will likely show a revenue windfall
- But inflation and rate hikes increase calls for prudence
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Canadian Prime Minister Justin Trudeau’s government will update its budget Thursday amid pressure to restrain spending as inflation and rising interest rates add to long-term risks.
Economists expect a commodities-driven revenue windfall will see this year’s deficit come in between C$20 billion ($14.7 billion) and C$30 billion less than budgeted in April. That will leave Finance Minister Chrystia Freeland with some scope to provide more one-off measures to help Canadians cope with higher prices, should she wish.