Canada's budget uses higher oil revenue for tax incentives and infrastructure
SPY•Mark Carney's second budget plans to use higher oil revenue to fund tax incentives and infrastructure over five years while keeping previous fiscal goals intact. An economist estimated the government gained about C$158 billion in additional revenue or fiscal room over the planning horizon.
1. Budget spending plans
Canada plans to use higher oil and commodity revenue to boost productivity and build infrastructure over the next five years. Economist Pedro Antunes estimated the revenue windfall created about C$158 billion in additional revenue or room to maneuver over the planning horizon, with roughly a third or more aimed at encouraging private-sector investment.
2. Economists weigh in
Economists said the deficit was little changed despite stronger-than-expected growth, and that the government chose to spend much of its additional fiscal room. Randall Bartlett raised concerns about the budget's accounting and federal debt position; a Finance Ministry spokesperson said the government holds its financial accounts to a high standard and that creative accounting would be highly unusual for a G7 country.
