Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Cancel Anytime
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The last formal projections were in Mr. Morneau’s March budget, which said the deficit for this fiscal year would be $19.8-billion, followed by a $19.7-billion deficit in 2020-21.

BLAIR GABLE/Reuters

Finance Minister Bill Morneau will release the government’s first fiscal update since the October election next week, just hours before he fields demands for more money from his provincial and territorial colleagues.

The Monday morning update is not expected to contain any new policy announcements, unlike some of Mr. Morneau’s past fall updates. Instead, it will be a traditional updating of the Finance Department’s forecasts for federal revenues and expenses.

The last formal projections were in Mr. Morneau’s March budget, which said the deficit for this fiscal year, which ends in March, would be $19.8-billion, followed by a $19.7-billion deficit in 2020-21. Since then, private-sector forecasters have lowered their projections for economic growth for this year and next and the Liberals have announced additional spending plans during the fall election campaign.

Story continues below advertisement

The more recent numbers in the Liberal Party platform said the 2020-21 deficit would be $27.4-billion. It also said deficits for the following three fiscal years would be $23.7-billion, $21.8-billion and $21-billion.

On Friday, Prime Minister Justin Trudeau released the mandate letters for federal cabinet ministers. Mr. Morneau’s revealed new details regarding the government’s fiscal plans.

The Finance Minister is being asked to follow four key principles: He must continue to reduce the ratio of the federal debt to gross domestic product; preserve Canada’s AAA credit rating; make investments that improve Canadians’ quality of life; and to “preserve fiscal firepower" so that the government has the financial capacity to increase spending in the event of an economic downturn that requires fiscal stimulus.

On Monday evening, Mr. Morneau is scheduled to play host to a dinner in Ottawa with his provincial and territorial counterparts for the annual December meeting of finance ministers. That will be followed by a day of meetings Tuesday. Mr. Morneau has agreed to a request from Alberta and Saskatchewan to discuss a possible expansion of the fiscal stabilization program, which is a form of emergency federal aid that can be offered when a province experiences a sharp and sudden economic decline.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies