......Thx to Harper's legacy........

Looser purse-strings: Canada’s budget
Today Justin Trudeau’s newish Liberal government will abandon the austerity favoured by its Conservative predecessor—and by most rich countries’ finance ministries—and embrace stimulus. The deficit is likely to soar to about C$30 billion ($23 billion) in 2016-17 from around C$2.3 billion. Canada has been hit hard as commodity prices, especially oil, have tumbled: GDP is forecast to grow by a languid 1.4% this year. Expect a boost to spending on social, green and public infrastructure, which Mr. Trudeau says will help the middle class. The finance minister, Bill Morneau, has already cut income taxes for 9m Canadians and raised them for the richest. With interest rates at 0.5%, after two cuts in 2015, Mr. Trudeau says that monetary policy alone can’t revive the economy, so fiscal policy must do its bit. Net debt is the G7’s lowest. With borrowing cheap, why not take advantage?

By: Economist


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