Prime Minister Trudeau acknowledged that it might not be possible to balance the federal budget before the end of its first term in office. The PM cited a weakening economy as a reason the books will remain in the red.
During the election the Liberal Party campaigned on a promise to run deficits no more than $10 billion annually in order to stimulate growth in the Canadian economy. They pledged to balance the budget by the fiscal year 2019-2020.
Upon seeing the figures from the finance department when first coming in to office, the government explained that the countries fiscal situation was worse than expected, and that the $10 billion deficit promise wouldn’t necessarily be kept. The Liberals now indicated they may not keep their other budget target as well.
The government will now focus on stimulating growth in the Canadian economy. They are also aiming at reducing Canada’s debt to GDP ratio during each year of its mandate.