Finance Minister Chrystia Freeland is set to publish the government's fall economic statement on December 16. This comes as the Liberals face a crucial time to address affordability issues with voters ahead of the next federal election in 2025. The statement will offer an update on federal finances, including the size of the deficit and any new policies.

Unveiling the Path to Economic Stability

Update on Federal Finances

The fall economic statement will provide crucial insights into the state of federal finances. As of now, the parliamentary budget officer predicts a deficit of $46.8 billion for the last fiscal year, contrary to the government's promise to keep it capped at $40 billion. This raises questions about the government's fiscal management and its ability to meet its financial goals.Freeland has not yet indicated whether she will fulfill her own pledge on the deficit. It remains to be seen how the government will address this issue and present a clear plan for fiscal discipline.

Impact on Voters and Affordability

Prime Minister Justin Trudeau's recent announcement of a two-month break on GST for holiday items and $250 rebates to low-income Canadians has sparked debates. The NDP does not support the rebate measure, arguing that it excludes fully retired seniors and people with disabilities. This highlights the complexity of addressing affordability issues and the need for a comprehensive approach.The government estimates that the GST break will cost $1.6 billion and the rebate $4.7 billion. These figures have significant implications for the federal budget and the overall economic situation.

Challenges and Perspectives

Robert Asselin, a senior vice-president at the Business Council of Canada, emphasizes the need for the government to be prudent with federal finances. He points out that the government has consistently failed to meet its fiscal targets and lacks a coherent strategy to foster private investment.Conservative Leader Pierre Poilievre calls for measures such as freezing the carbon price, reining in spending, and cutting the GST on new homes sold for under $1 million. He criticizes the government for adding inflationary spending and dangerous debt.It is unclear how a potential filibuster in Parliament will affect the government's ability to present the fall economic statement. This adds an element of uncertainty to the already complex economic landscape.In conclusion, the fall economic statement will play a crucial role in shaping the government's economic policies and addressing the various challenges facing the country. It remains to be seen how the government will navigate these issues and present a viable plan for the future.