Federal Finance Minister Bill Morneau said he will deliver the first budget of the new Liberal minority government on March 30.
Morneau told the House of Commons that the budget will have a climate lens, but the outbreak of the coronavirus has changed some spending plans. The finance minister said last week that the budget will likely include an increased contingency cushion should the economic hit from the coronavirus be prolonged and deep.
The cushion amounts to projected revenues the government sets aside annually as a shock absorber if the money doesn't materialize due to an economic downturn, and also counts against the deficit. The deficit is projected to be $28.1 billion before any new spending the Liberals will add to meet platform commitments, such as the first steps towards a national pharmacare program.
Speaking in the House of Commons, Morneau touted the federal government's fiscal position as a way to deal with economic challenges facing the country from the coronavirus outbreak and a drop in oil prices.
"We're trying to ascertain the depth and the length, the duration of this challenge," Morneau said. "Obviously as facts emerge they are going to enable us to decide how we should best respond. The budget will be an important time for responding."
The spending blueprint will also be a political test for the Liberals who need the support of enough opposition Members of Parliament to get the budget approved. Otherwise, the government would fall on a confidence vote.
Multiple bank forecasts now have Canada’s Gross Domestic Product growth for this year below 1%. Morneau said the budget will update economic forecasts to show what the situation is today, and how that forms the basis on the government's planning.
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