Canada Economics

Fall update fiscal projections too upbeat

Canada Economics Update
Written by Capital Economics Economist

In his fall budget update, Finance Minister Bill Morneau more than used up the revenue windfall from stronger GDP growth and higher oil prices this year to increase incentives for business investment. Unfortunately, the recent slump in oil prices means that Morneau will either have to tighten the purse strings or revise up the deficit projections in the 2019 budget.