The 2016 federal budget comes in the midst of a marked deceleration in economic growth and the prospect of a modest recovery over the next year. Stepped-up program spending over the next two fiscal years, averaging 6 percent annually, provides support for growth and a buffer to cushion the economic downturn through enhanced programs for the elderly and the unemployed, and for families under the new Canada Child Benefit. The federal spending trajectory, however, is mindful of keeping the debt-to-GDP in check.

The budget deficit balloons to just under $30 billion in the coming fiscal year … Continue reading →