Economy

PM Trudeau tells finance minister to avoid additional permanent spending

Published

4 years ago

January 17, 2021

OTTAWA (Reuters) – Canadian Prime Minister Justin Trudeau, under fire for the massive aid Ottawa has unveiled so far to combat the coronavirus, on Friday told his finance minister to avoid additional permanent spending.

By March 31 Canada will have spent a total of C$320 billion – or around 13% of gross domestic product – on measures to help firms and people and is planning to spend an additional C$100 billion over three years to kick-start the recovery.

As a result the budget deficit and national debt are on track to set new records, prompting opposition parties to complain about unsustainable expenditures. Finance Minister Chrystia Freeland is due to present a budget at some point in the next few months.

“You will use whatever fiscal firepower is needed in the short term … until the economy improves. Doing so, you will avoid creating new permanent spending,” Trudeau said in a letter to Freeland.

He also said she should produce a plan to grow the economy while presenting a new fiscal anchor to guide her work.

The so-called mandate letters – which formally outline what is expected of cabinet members – were sent to every member of the Liberal government.

(Reporting by David Ljunggren, Editing by William Maclean)

Economy

September merchandise trade deficit narrows to $1.3 billion: Statistics Canada

Published

8 hours ago

November 5, 2024

Anne Joseph

OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.

The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.

Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.

Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.

Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.

In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.

This report by The Canadian Press was first published Nov. 5, 2024.

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