Canadian Prime Minister Justin Trudeau’s government will deliver new fiscal and economic projections later this month but fresh investments will be “limited in scope,” a source familiar with the drafting of the fall fiscal document told Reuters on Thursday.
Trudeau, who won his third election in September, is facing pressure from the opposition in parliament and business groups to scale back spending for fear that government expenditure will fuel inflation, which is at an 18-year high.
“We’re going to be prudent,” a second source familiar with the government’s plans said.
The so-called fall fiscal update will be similar to the documents released following the 2015 and 2019 elections, the first source said. Other years when elections were not held, the fiscal update has been more substantial, like a mini-budget.
After COVID-19 supports for businesses and individuals produced the highest deficit since World War Two last year,
Trudeau during his campaign pledged C$78 billion ($60.9 billion)in new spending over five years to foster Canada’s economic rebound.
“This will be an update on where the nation’s finances are right now,” the first source said. “We certainly have an ambitious plan that we will continue to move forward on. That’s why you have a budget.”
There was no immediate comment from the prime minister’s office. The finance ministry declined to comment.