Trudeau government set to table modest budget amid U.S. uncertainty
OTTAWA — The Trudeau government will chart the next segment of its mandate this week in what’s expected to be a modest budget — but the omnipresent economic unknowns in the U.S. could eventually force Ottawa from a steady-as-she-goes course.
For now, the stronger U.S. economy is benefiting Canada. Finance Minister Bill Morneau will present the country’s budget Wednesday amid a brightening outlook, thanks in large part to the United States.
In recent months, healthier Canadian numbers — from trade, to labour, to housing — have encouraged forecasters to raise their projections for economic growth.
Some believe these improvements will put Ottawa on a path toward smaller annual deficits than what the government had predicted last fall. After a surprisingly robust finish to 2016, Ottawa’s anticipated $25.1-billion shortfall for 2016-17 is widely expected to come in less than projected.