Freeland doesn’t commit to meeting her own deficit target in fall economic statement

By Nojoud Al Mallees, The Canadian Press on December 10, 2024.

Deputy Prime Minister and Finance Minister Chrystia Freeland speaks with reporters in Ottawa, Tuesday, Dec. 10, 2024. THE CANADIAN PRESS/Adrian Wyld

OTTAWA – Finance Minister Chrystia Freeland is not committing to meeting the $40.1-billion deficit target she set for the government last year.

Freeland says she expects the fall economic statement, which she will present on Dec. 16, will show a declining debt-to-GDP ratio.

When asked if she would also meet her deficit target, Freeland wouldn’t answer, saying she chose her words “carefully.”

The finance minister announced a set of fiscal guardrails last fall in response to pressure from the Bank of Canada and economists to avoid fuelling inflation with too much spending.

Freeland now appears to be ditching at least one of those guardrails, which was to keep the deficit at or below $40.1 billion for the previous fiscal year.

The parliamentary budget officer projected the deficit would be $46.8 billion.

This report by The Canadian Press was first published Dec. 10, 2024.