Bank of Canada Governor Tiff Macklem said that the draft budget of Prime Minister Justin Trudeau did not become a factor of impact that led to changes in the concept of fiscal policy that the financial regulator formed back in November last year.
On Friday, April 19, Mr. Macklem, while talking to reporters after annual meetings with the International Monetary Fund and the World Bank Group in Washington, noted that it would be helpful for Canadian Finance Minister Chrystia Freeland to meet the requirements that she set out in her autumn budget update. The head of the financial regulator said that at the macro level, more money is going out, and more money coming in on the net.
Canada’s federal budget for the current year, announced this week, contains a promise by the Minister of Finance to hold the deficit at about 40 billion Canadian dollars (29.1 billion US dollars). Revenue is projected to increase from Ottawa’s improved economic condition. Moreover, tax increases are expected for the richest Canadians and corporations. Besides, Ottawa’s spending on housing and defense is projected to grow significantly. The opinion is circulating in the expert community that the mentioned expenditures will exacerbate the expansionary policies of the provinces, which will significantly complicate the efforts of the Bank of Canada to contain price pressure.
Tiff Macklem says that the next phase of inflation downing is beginning. In this context, he also noted that countries around the world have made significant progress in countering the rising cost of goods and services, but global economic growth is ahead of expectations, which, according to him, is especially actually for the United States.
As we have reported earlier, Canada Sheds Jobs.
