The budget tabled by the Trudeau government has said that the government plans to use billions of dollars of fresh fiscal to make new investments.
The extra dollars that the Fed has will be channeled by the Finance Minister Bill Morneau to new spending. He will be investing the money in some of the sectors that he feels will help in lifting the growth of Canada in the long run.
Morneau released his third fiscal plan in February and assured the Canadians that he will carry out all his commitments in a responsible way. He also said that his earlier investments have started to produce economic results.
Morneau said that the Canadian economy is doing very well. As the economy is very strong, there is no better time than now to focus on some of the big challenges that the country is facing.
He said that the government is holding $19.8 billion in cash to use over the next six years. This means they have an excess of $3.3 billion to spend every year. The money has come from several sources like tax change revenue from corporations, better economy, less departmental spending, etc.
Morneau said that the government will be posting annual deficits in a similar fashion as it is making new investments.