The Fall Economic Statement (FES) showed a much larger budget deficit for the previous fiscal year than previously estimated, but that was largely due to one-off charges related to indigenous settlements. Compared to Budget 2024, the new net spending measures for the current year total $5.5bn, or just 0.2% of GDP, mainly due to the GST holiday.
The budget deficit for the previous fiscal year was revised up by $21.8bn to $61.9bn, or 2.1% of GDP! Yikes…
The FES became the secondary event following the resignation of Finance Minister Chrystia Freeland yesterday morning. The planned tax rebates that Freeland disapproved of, which appeared to be the main source of tension with Prime Minister Justin Trudeau and which were estimated to cost close to $5bn. This did not make it into the FES.