Budget 2017

CPAC

 

Budget 2017 Live

BUDGET 2017: SIX KEY HIGHLIGHTS:

  1. Deficit forecast at $23 billion for 2016-17, rising to $28.5 billion in 2017-18, followed by $27.4 billion in 2018-19, $23.4 billion in 2019-20, $21.7 billion in 2020-21, and $18.8 billion in 2021-22.

  2. New spending of $4.8 billion between 2016 and 2022 fiscal years, mostly after 2018.

  3. EI premium raise from $1.63 to $1.68 per $100 of insurable earnings.

  4. $11.2 billion over 11 years for affordable housing as part of a new National Housing Strategy.

  5. Consolidation of innovation funding into $1.26-billion Strategic Innovation Fund.

  6. $6 billion over 10 years for home care, and $5 billion over 10 years for mental health, if agreement can be reached with the provinces and territories.

  

 

Peter Van Dusen explains what you need to know about the 2017 federal budget:

 
 

 

FISCAL BALANCE AND THE ECONOMIC OUTLOOK

  • The budget contains $4.8 billion in additional spending to be added to the fiscal balance through 2021-22, with most coming after 2018.

  • Deficit forecast at $23 billion for 2016-17, rising to $28.5 billion in 2017-18, followed by $27.4 billion in 2018-19, $23.4 billion in 2019-20, $21.7 billion in 2020-21, and $18.8 billion in 2021-22. The government has re-introduced a $3-billion risk adjustment to the budgetary balance, beginning in the next fiscal year.

  • Debt-to-GDP ratio to remain between 31 and 32 per cent through 2021-22.

From the budget document:

For Canada, risks to the economic outlook are still highly contingent on the state of the world economy. On the downside, oil prices could disappoint in the near term should supply rise further, Canadian export growth could remain modest, and possible U.S. policy actions affecting trade could restrain exports to the U.S. even further. Weaker-than-expected global growth, as well as further depreciation of the currencies of Canada’s competitors, could also dampen Canadian export prospects. Domestically, Canadian households’ high debt levels still represent a key risk to housing and consumer spending, especially if the economy were to face slower income growth.”
 
On the upside, growth in the U.S. could be stronger than expected given indications of a more expansionary fiscal policy. Oil prices could also be higher than expected in the medium term if demand strengthens more than expected, which would lead to higher income and investment in Canada.”

 

READ THE FULL BUDGET DOCUMENT:

 

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