• The government expects to run a deficit of $28.5 billion (about 1.3% of GDP) in the coming fiscal year, roughly in line with 2016 budget projections.
• Deficits continue over the forecast horizon, declining somewhat in size. The result is a level of federal debt expected to settle around 31% of GDP by fiscal 2021.
• Digging into the details revealed a largely business as usual budget, focused on continuing to implement the sizable promises made in Budget 2016. Only $4.4 billion in net new spending is planned over a five-year horizon.
• Notable by their absence were any major changes to the tax system. Small tweaks were made around the edges, but the capital gains inclusion rate was left untouched, as were other major tax rates.
• While some might have been hoping for significant changes in policy, the cautious approach shown today appears warranted. Big spending measures from last year still need to be implemented, while global and domestic economic uncertainty remains elevated.
Sean Dhillon | Manager, Mobile Mortgage Specialist | TD Canada Trust
Cell 250-818-1943 | Fax 844-206-2568
Email sean.dhillon@td.com
Web http://mms.tdcanadatrust.com/sean.dhillon/
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