Canada to present its 2022 budget next week as inflation soars
OTTAWA (Reuters) -Canada’s federal authorities will current its 2022 price range on April 7, Finance Minister Chrystia Freeland mentioned on Tuesday, because it plans to spice up spending on protection and different packages even because it grapples with sizzling inflation.
Freeland mentioned the Liberal-led authorities is dedicated to rising Canada’s economic system, making life extra inexpensive and persevering with to construct a society the place nobody is left behind.
“That’s precisely what we’re doing, and that’s what we will proceed to do within the price range that I’ll current to this home on April 7,” Freeland mentioned throughout query interval in parliament. She added the price range could be launched at 4 p.m. ET (2000 GMT).
Canada’s Liberals have been re-elected final yr for a 3rd time period, however Prime Minister Justin Trudeau did not safe a majority. This month, he introduced a help cope with the opposition New Democrats that can maintain him in energy till 2025.
In change, the Liberals will again a nationwide dental-care program for low-income Canadians and to maneuver ahead on a nationwide prescription drug plan – two pricey initiatives.
Economists mentioned the settlement will seemingly result in heftier deficits and threatens to upend authorities guarantees to rein in inflation. Canada’s inflation fee hit 5.7% in February and is anticipated to go increased.
Canada has additionally pledged to spend extra on protection following Russia’s invasion of Ukraine, although it has not but supplied any particulars.
Earlier on Tuesday, Trudeau pledged inexpensive housing could be a significant focus within the upcoming price range.
“I can guarantee you that investments in housing … throughout the nation will probably be a powerful subject within the price range that we are going to be presenting,” Trudeau mentioned.
The worth of a typical residence in Canada has greater than doubled since Trudeau’s Liberals took workplace in November 2015 and are up 52% because the pandemic onset.
(Reporting by Julie Gordon and Steve Scherer in Ottawa; modifying by Jonathan Oatis)
