Stronger economy won’t knock Ottawa from its deficit path: Morneau
OTTAWA — Federal Finance Minister Bill Morneau suggests he has no plans to provide a timetable for returning Ottawa’s books to balance — even with a scorching economy.
Morneau credited the strong economic performance to the Trudeau government’s strategy to run deficits, which helped it finance measures such as lower income-tax rates for middle earners and enhanced child benefits.
Moving forward, he said Tuesday that Ottawa intended to pursue its plan to invest more than $180 billion into infrastructure over the next 11 years. That spending is projected to contribute to annual, multibillion-dollar shortfalls across Ottawa’s five-year budgetary outlook — and perhaps beyond.
Morneau’s remarks outside a cabinet retreat in St. John’s came after months of impressive economic data, including a recent report showing growth expanded at an annualized rate of 4.5 per cent in the second quarter.