Feds hope Canadians will focus on long-term economic plan over short-term pain
OTTAWA — The federal Liberal government will update the country’s economic and fiscal progress Tuesday, hoping to encourage Canadians to focus on the potential of its long-term plan — and overlook the sting of multi-year, multibillion-dollar deficits.
The Liberals won last year’s election on a platform promising to help lift the slow-growth economy with billions worth of borrowing to fund more ambitious infrastructure and child-benefit programs for the long haul.
But a few months into their mandate, the Liberals pointed to weaker-than-expected economic conditions as they tripled their anticipated budgetary deficits for the next two years — nearly $30 billion each. They predicted more than $110 billion in total shortfalls over the next five years.
Facing political pressure to show results from the early investments, Finance Minister Bill Morneau is expected to reiterate his argument Tuesday that Canadians should be fixating on the government’s long-term goals.