All eyes are now on the Finance Minister of Canada Bill Morneau and the federal budget that he is going to present very soon. A few of the economic analysts believe that the FM will show some curbing nature when announcing the next federal budget.
The economic growth of Canada is seeing a decline from the highs that it hit last year. So, this might make the FM go soft on government spending in this federal budget.
The Federal government must look at higher fiscal spending by cutting the taxes and looking to spend. This is what the U.S. has done to boost its economy. Many feel that Canada must also follow the U.S. and bring in tax cuts and reforms. They feel that the business in Canada will suffer at the hands of the U.S. business with the new tax cut policy announced by President Donald Trump.
If the bank of Canada Governor Stephen Poloz does not get involved with the FM’s finance department, the fiscal spending that the government does will result in a quicker increase in the interest rates.
There are chances for the Canadian FM to announce fiscal spending plans for the coming years. He can change the current spending plans, but might not bring out new spending for this year.