Trudeau to Detail Second-Term Fiscal Starting Point on Monday

(Bloomberg) — Justin Trudeau’s finance chief will deliver a budget update Monday that will outline the fiscal framework the Canadian prime minister’s government will be using in its second term.

Finance Minister Bill Morneau confirmed the release in a statement on Twitter. The fiscal update will be released in the morning on Dec. 16 just before 11 a.m. Ottawa time, and will simply be an update of economic and fiscal numbers, a person familiar with the plan said. It comes after an election campaign in October that saw the Liberals retain power, but lose their majority in parliament.

The parliamentary budget watchdog estimated after the election that the government’s deficits will rise to C$21.1 billion ($16 billion) this year and C$23.3 billion in 2020, from C$14 billion in 2018, even before taking into account the new measures Trudeau promised during the campaign. The Liberals had said they anticipate the budget deficit will jump to about C$27 billion in 2020 once new tax cuts and spending are introduced, exceeding 1% of gross domestic product for the first time since 2012.

One measure that may be incorporated into Monday’s budget update will be the Liberal government’s latest personal income tax cut. Morneau introduced a motion in parliament this week to indicate his intentions to move ahead with the cut, which gradually raises the basic income tax deduction.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.