The article discusses the upcoming fiscal update by the Canadian government, led by Finance Minister Chrystia Freeland. The update is expected to address the country’s housing crisis and make living more affordable for Canadians. According to economists, the update will focus on building new homes faster and making them available to Canadians.
Some key points from the article include:
- The Liberals are trailing the Conservatives in polls, particularly with regards to housing affordability.
- Economists expect the fiscal update to be focused on increasing spending to address the housing crisis, rather than providing "broad handouts" like a grocery rebate.
- Deficits for this year and further out are expected to come in slightly higher than originally forecast due to lower revenue and higher interest rates.
- The Canadian government has some wiggle room to increase spending, given that its deficits are not as severe as those in the US or other countries.
Overall, the article suggests that the fiscal update will be a response to the housing crisis and an attempt by the Liberals to regain political ground. However, economists caution against excessive spending and recommend outlining fiscal anchors to guide future policy decisions.