The IBEW Canada review of last week’s 2018 Federal budget
On February 27th, the Government tabled its 369-page Federal Budget. Unfortunately, this budget focuses more on politics than an actual budget; while there is plenty of money allotted to programs, in most instances, there is no clear indication of how these items will be implemented or paid for. The Government believes that the strong economy and more people working will help pay for these programs and help reduce the deficit.
The Government indicates that the GDP is projected to grow by 2.2 per cent in 2018, but the growth rate is expected to fall below two per cent in subsequent years. Taking that into consideration, the Government will continue to run deficits through 2022-23, though the Federal debt-to-GDP ratio will be reduced over that time period.