For some economists, Ottawa\u0027s fiscal update struck a decent balance between spending and saving a surprise revenue windfall. Read on
However, economists think a 0.7 per cent growth forecast is a bit optimistic, and several expect GDP to come in at 0.2 per cent next year.
Major financial institutions also highlighted the projected decline in Ottawa’s so-called “fiscal anchor” — the debt-to-GDP ratio. For this fiscal year, debt to GDP is expected to pull back to “42.3 per cent from 45.5 per cent last year and the pandemic peak of 47.5 per cent,” BMO Capital Markets said in a note. However, the measure is well off the pre-pandemic level of 31 per cent, BMO added.
Excluding an $8.5-billion provision for ‘anticipated near-term pressures’ net new spending over the forecast horizon is nearly equal parts growth- and affordability-oriented, and the latter is fairly well-targeted toward lower-income households. But these measures add to an already-elevated spending track — at 15.7 per cent of GDP, program spending in the current fiscal year is the highest in nearly three decades outside of the pandemic.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Aggressive Bank of Canada rate hikes could add more strain on Ottawa’s debt servicingBank of Canada\u0027s mission to stomp out inflation risks triggering a recession that could put greater strain on Ottawa\u0027s finances. Read on.
Read more »
Aggressive Bank of Canada rate hikes could add more strain on Ottawa’s debt servicingBank of Canada\u0027s mission to stomp out inflation risks triggering a recession that could put greater strain on Ottawa\u0027s finances. Read on.
Read more »
Aggressive Bank of Canada rate hikes expected to put more strain on Ottawa's financesBank of Canada\u0027s mission to stomp out inflation risks triggering a recession that could put greater strain on Ottawa\u0027s finances. Read on.
Read more »
Aggressive Bank of Canada rate hikes expected to put more strain on Ottawa's financesBank of Canada\u0027s mission to stomp out inflation risks triggering a recession that could put greater strain on Ottawa\u0027s finances. Read on.
Read more »
Ottawa reveals plan for new tax on stock buybacksOttawa\u0027s tax plan is expected to increase federal revenues by $2.1 billion over five years. Read more.
Read more »
Ottawa reveals plan for new tax on stock buybacksOttawa\u0027s tax plan is expected to increase federal revenues by $2.1 billion over five years. Read more.
Read more »