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

Ocean “Blob” returns to North Coast of B.C.

A 2,000 kilometre patch of warm ocean water could signal a warm winter in Prince Rupert

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

10 things still illegal in the new age of recreational cannabis

Pot is legal – but there are still a lot of rules, and breaking some could leave you in jail

CCRD Candidates detail their election platforms

More candidate profiles to come….

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

Prank pizzas delivered to B.C. mayor on election night

The fake orders happened throughout Victoria mayor’s re-election campaign

MLA to become Nanaimo’s next mayor, could weaken NDP’s grasp on power

Leonard Krog’s win will trigger a byelection when he gives up his provincial seat

Horvat nets OT winner as Canucks beat Bruins 2-1

Young Vancouver star had spirited scrap earlier in contest

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Most Read