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

Supporters rally for Jason Kenney as UCP leader stops in Red Deer

Kenney promises equalization reform, stopping ‘Trudeau-Notley’ payroll hike, trade, economic mobility

Sylvan Lake anglers reminded to remove ice huts before spring thaw

Anglers have until March 31 to remove their structures from the surface of the ice

Protect your pets from ticks, says Sylvan Lake vet

The number of ticks in Alberta has increased, and has put people and pets in danger of Lyme disease

Check online to make sure you’re registered to vote in upcoming provincial election

Advance polls open Tuesday, April 9th to Saturday, April 13th

NDP Leader Rachel Notley stops in Red Deer on campaign trail

Notley promises hospital expansion, cath lab, pipelines and energy industry expansion

VIDEO: Restaurant robots are already in Canada

Robo Sushi in Toronto has waist-high robots that guide patrons to empty seats

Terror at sea: Helicopter rescues frightened cruise passengers in Norway

The Viking Sky cruise ship was carrying 1,300 passengers and crew when it experienced engine trouble

DOJ: Trump campaign did not co-ordinate with Russia in 2016

Attorney General William Barr said special counsel “does not exonerate” Trump of obstructing justice

Judges on Twitter? Ethical guidance for those on the bench under review

Canadian judges involvement in community life are among issues under review

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Most Read