Tax & Spend
Trudeau Spends Half of Windfall With Budget on Track for Balance
- Freeland forecasts modest surplus in Canada within five years
- Government plans 2% tax on buybacks, boosts green tax credits
Chrystia Freeland speaks during a press conference in Ottawa on Nov. 3.
Photographer: James Park/BloombergThis article is for subscribers only.
Prime Minister Justin Trudeau’s government plans to spend about half of its windfall revenue gains this year, while keeping Canada on track for a balanced budget within five years.
The fiscal update unveiled by Finance Minister Chrystia Freeland on Thursday shows C$29.8 billion ($21.7 billion) more fiscal room than what was forecast in her April budget, thanks to inflation and high commodity prices. The deficit for the fiscal year that began in March is now $36.4 billion, down from the $52.8 billion shortfall previously projected.