Freeland has stressed that the Liberal government is focused on fiscal restraint, so as to not work against the Bank of Canada’s efforts to tame inflation. cdnpoli
Economists stress it’s important that fiscal policy doesn’t stimulate demand in the economy at a time when the central ban is trying to slow it down.
According to the parliamentary budget officer’s most recent forecasts, the federal deficit is expected to be $36.5 billion for the 2022-23 fiscal year.But with economic growth slowing, government revenues are at risk of taking a hit. The government’s 2022 fall economic statement indicated it plans to introduce more measures to support Canada’s green transition and stay competitive with the United States on clean technology.
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