A day later, Morneau defends his budget

Minister fields complaints that plan doesn’t protect Canada enough from competitiveness threats

Minister of Finance Bill Morneau participates in a post-budget discussion at the Economic Club of Canada in Ottawa on Wednesday. (Justin Tang/The Canadian Press)

Finance Minister Bill Morneau is defending his latest federal budget against complaints that it doesn’t do enough to shield Canada from shorter-term competitiveness threats linked to incoming U.S. tax reforms.

In a speech to the Economic Club of Canada, Morneau says Ottawa will focus on more immediate worries like NAFTA and lower U.S. corporate taxes at the same time it takes steps to address longer-term domestic risks, such as the aging workforce.

The fiscal plan tabled Tuesday in the House of Commons was packed with billions of dollars worth of new investments, including measures to increase the labour-force participation of women.

READ MORE: B.C. welcomes Ottawa’s help on rental housing construction

To pay for it all, the Liberal government used up roughly $20 billion of additional fiscal room over the coming years that came from economic improvements, reprofiled infrastructure commitments and lower-than-expected departmental spending.

Morneau says Canada needs to play both a long game and a short game — and that the brightening economy enables the government to do just that.

In a news conference following his speech, Morneau reiterated that his department is still doing its homework on impending U.S. tax reforms that business leaders have warned could damage to the Canadian economy.

Tuesday’s budget showed the Liberal government is still predicting billions of dollars in annual deficits over the next six years.

The government is forecasting a shortfall of $18.1 billion for 2018-19, which will be followed by annual deficits set to shrink each year to $12.3 billion in 2022-23. The projections, which are similar to those the government posted in October, include annual $3-billion cushions to offset risks.

Morneau is focused on another fiscal “anchor” of lowering the net debt-to-GDP ratio, which is a measure of Ottawa’s debt burden. The budget predicts the ratio to decline each year over the outlook.

Andy Blatchford, The Canadian Press

Just Posted

Rebels victorious over Swift Current Broncos

New Forwards Brett Davis and Cameron Hausinger showing lots of confidence on the ice

One hundred and five trees of Christmas

Red Deer couple decorated 105 Christmas trees to raise money for the Central Alberta Humane Society

Nuit Blanche Red Deer looking to make a comeback in 2019

Local organization is hosting a Christmas artisan market on Dec. 15th

Site of future Child Advocacy Centre on RDC campus unveiled

Centre to be located on the southwest area of the campus

Lacombe, Red Deer snubbed from new ambulance list

Lacombe Councillor Chris Ross continues to advocate for added care in Central Alberta

WATCH: Every dog has its day

Red Deer and District Kennel Club’s show began Friday and runs all weekend at Westerner Park

WATCH: CP Holiday Train rolls into Lacombe

Kelly Prescott performed for hundreds of Central Albertans

In Canada, the term ‘nationalism’ doesn’t seem to have a bad rap. Here’s why

Data suggest that Canadians don’t see the concept of nationalism the way people do in the United States

Canadians spent $1.7 billion dollars online in December 2017

Online retail sales accounted for 3.4 per cent of total retail sales

China: Canada’s detention of Huawei exec ‘vile in nature’

Huawei is the biggest global supplier of network gear for phone and internet company

Canadian community rallies behind hundreds who lost their jobs ahead of holidays

ServiCom facility closure in Nova Scotia was announced Thursday, following weeks of pay delays

Canada seeking new members of anti-coal alliance at climate meeting

Poland relies on coal for almost 80 per cent of its electricity, more than double the global average

Shoppers Drug Mart granted licence to sell medical marijuana online

Shoppers was granted a medical marijuana producer licence in September, after applying in October 2016

‘Mylan’s been hit’: Teammate recalls shooting of Calgary Stampeder Mylan Hicks

Nelson Lugela, 21, is on trial for second-degree murder in the death of Calgary Stampeder Mylan Hicks

Most Read