Finance Minister Bill Morneau will deliver his fall economic update next Tuesday against the backdrop of a surprisingly strong Canadian economy.
While the update will also “affirm” proposed changes to Canada’s tax rules, it may not include what many critics have been calling for — a roadmap back to fiscal balance.
Morneau made the announcement in the House of Commons earlier Thursday after being pelted by opposition critics over allegations of conflict of interest involving his financial holdings and proposed changes to small business taxes.
The update comes as Canada’s economy continues to post better than expected growth. Real GDP growth hit 4.5 per cent in the second quarter, but is expected to moderate in the coming quarters. In an interview with BNN earlier this month, Morneau said Liberal economic policies helped to fuel that growth.
That growth has helped reduce the size of the federal deficit. Last month Ottawa said it ended the 2016-17 fiscal year with a deficit of $17.8 billion — that’s compared with a $23 billion deficit that was forecast in the spring budget.