Carney promises ‘good news’ in spring economic update

Open this photo in gallery:Prime Minister Mark Carney said there would be “good news” on the federal government’s fiscal position in Tuesday's spring update.Sean Kilpatrick/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountPrime Minister Mark Carney says the Liberals are “good fiscal managers” – and he’ll have the chance to prove it when the federal government tables its spring economic update Tuesday afternoon.The federal government typically tables mid-year updates between annual budgets to revise its economic and fiscal projections. These updates can include new spending and are sometimes referred to as “mini-budgets.”The Liberals’ fall budget – the first under Carney’s leadership – projected a deficit of $78.3-billion for the last fiscal year, with deficits declining and averaging around $64-billion annually over the five-year horizon.The federal fiscal monitor for April 2025 to February 2026 shows the deficit came in at $25.5-billion over the first 11 months of the last fiscal year.Editorial: The Liberals’ second chance for budget boldnessMarch typically sees a large one-month jump in the deficit, though some analysts still expect the federal government will post a lower deficit than projected in Budget 2025.Speaking to reporters on Monday, Carney suggested there would be “good news” on the federal government’s fiscal position in the spring update.A reporter asked the Prime Minister why the deficit would come in lower than projected. “Because we’re good fiscal managers,” Carney replied.“We focus on the numbers. And we were determined to get spending down with a lot of very … difficult decisions. You can’t do everything at the same time,” he added.Opinion: Mark Carney looks for investment the Liberal wayConservative Leader Pierre Poilievre has called on the Liberals to slash spending and get the deficit on track to balance. He calls the Liberals’ approach to spending “credit card budgeting” and argues it will cost Canadians through higher inflation and interest payments down the road.Poilievre did not suggest a timeline for balancing the budget when asked by reporters Monday.“Let’s figure out how badly Mark Carney messes up the books before we announce how long it will take for Conservatives to clean it up,” he said.The Prime Minister has justified deeper deficits by citing the need to build major projects, ramp up defence spending and transition Canada’s economy away from reliance on the United States.On Monday, he announced the creation of a sovereign wealth fund with an initial $25-billion capitalization to invest alongside the private sector in nation-building projects.What is a sovereign wealth fund and how does it work?Since the fall budget, the federal government also has unveiled new affordability measures – including a boost to the GST benefit for lower-income households and a pause on the federal fuel excise tax until Labour Day – that will add new expenses to the fiscal outlook.Prime Minister Mark Carney announced the country's first national sovereign wealth fund on Monday, pitching the new agency as a way for Canadians to invest in nation-building projects. He says the Canada Strong Fund will invest in major Canadian industrial projects in areas such as energy, infrastructure, mining, agriculture and technology.The Canadian PressIn a video statement released on Sunday, Finance Minister François-Phillippe Champagne touted those efforts, saying “bringing down everyday…

This excerpt is published under fair use for community discussion. Read the full article at The Globe and Mail.