Canadian government to table fall economic statement next Monday

Finance Minister Chrystia Freeland is set to table the federal government’s fall economic statement on Dec. 16, the government announced Monday.

Freeland, in a press release, said the “government is focused on delivering fairness for every generation,” and doing so “in a fiscally responsible way.”

The press release does not detail the location or timing or the fall economic statement, only the date.

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The fiscal check-in will happen just one day before the House of Commons is expected to adjourn for the year, after months of procedural wrangling over a Conservative-led privilege debate.

The revised look at the books comes amid questions over the potential economic impact of U.S. president-elect Donald Trump’s looming threat of 25 per cent tariffs on all imports from Canada and Mexico, until the two stop the flow of illegal drugs and migrants over the borders.

In an effort to address Trump's concerns ahead of any imposition of U.S. trade action, the federal government has pledged more resources and personnel, and to be “very visible” at the border.

The federal government has yet to lay out specifics on the cost, but The Hill Times reported on Monday that it could top $1 billion.

The federal government has also promised $4.7 billion in affordability relief, in part through a $1.6-billion GST/HST holiday that's close to passing Parliament, while the other portion of this package, a $250 “Working Canadian Rebate” for 18.7 million Canadians, sits on the back burner.

Months before either the increased border efforts or the holiday tax break promises were made, the parliamentary budget officer was already estimating the government would be running a deficit beyond the $40 billion projected in the April 2024 budget. The PBO calculated the deficit would be closer to $46.8 billion in the 2023-24 fiscal year.

While mid-December is later than typical to release the fall update on federal finances, it’s not unheard of.

Last week, Conservative Leader Pierre Poilievre offered up two hours of his party’s opposition day time on Monday for Freeland to table the update, a proposal the finance minister called “utterly absurd.”

A senior government official then told CTV News it would be "a reckless and ill-thought-out idea” to present the updated fiscal picture fewer than 48 hours before the Bank of Canada announces its latest interest rate decision. That interest rate announcement — the central bank’s final one this year — is set for Wednesday.

“We will see if she keeps her solemn commitment to a $40-billion deficit, or whether that promise will also go by the wayside,” Poilievre said in the House on Monday, before calling for the Liberals to “in the name of God, stop” what he called inflationary spending and increasing taxes.

Robert Asselin, senior vice-president for the Business Council of Canada, said in a statement Monday that “fiscal prudence is essential,” especially in light of the “significant economic and fiscal challenges” Canada is facing.

“Unfortunately, this government has consistently failed to meet its fiscal targets and lacks a coherent strategy to foster private investment,” Asselin wrote. “The government must use the December 16th Fall Economic Statement to prioritize effectively and adopt greater fiscal discipline.”

With files from CTV News’ Rachel Aiello and Stephanie Ha