The finance minister of Canada, Bill Morneau, is expected to disclose the principal terms of Liberal's first budget on Monday. The numbers will portray the vast change in the budget of the federal government that was released in November as well an update on economic conditions.
The record will also give a better insight of the forthcoming budget scarcity, the HUFF POST CANADA said quoting unidentified sources. However, the finance minister will not give any gloomy figures on the economic downturn as the entire budget has yet to be finished. According to the sources, Morneau is disclosing the updated economic figures just few weeks before the impending budget.
Bill Morneau is set to release this updated figures amid the continuous weak growth outlook for Canada, which has been ailing with global economic slowdown and fall in crude prices. The OECD last week trimmed Canada's economic growth forecast to 1.4% in 2016. In early February, financial experts from private departments downgraded their economic growth estimation for the country and this is anticipated to establish a fiscal layer for the budget.
According to Morneau, the Liberals has to spend more on the nation's economy in order to boost growth as well as to aid the middle-class communities to attain a financial stability. The sources also added that Morneau will debate on the merits of Liberal's spending approach with regard to growth strategy than the cost cutting approach by the Conservative government. After this "pre-budget consultations," Morneau is expected to appear in front of the finance committee at House of Commons on Tuesday.
However, the finance minister will not disclose the exact figure of the budget deficit, which Prime Minister Justin Trudeau suggested could be as much as $25 billion. The Liberal's election pledge included an annual budget scarcity of $10 billion to run the nation's economy for a period of three years. They also promised to return the country to the black within 2019 -2020. The Liberals still pledges to trim the nation's debt with regard to the economy size.
Currently, Morneau is put under pressure from provinces, cities and cabinet colleagues, who are looking for federal monetary assistance. Morneau will be questioned by the Conservative party counterparts and also MPs of NDP regarding his spending approach, as reported in THE GLOBE AND MAIL.
The Liberal government, which has backed off from the election promises, is looking for investments that will bring the nation's economy back to its balanced position over the long run. Glen Hodgson, who advised Morneau on his pre-budget plans, said that the overall economic growth of Canada is weak, with Alberta expected to remain in an economic slump throughout 2016, and British Columbia projecting growth at 3%, CAPE BRETON POST said.
The government of Canada is working hard to uplift the lifestyle of middle-class communities amid the poor global economic condition and fall in oil prices. Morneau's revised budget figures will highlight the problems facing Canada's economy.
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