The Liberal government will table its first budget today — a crucial spending plan that will brand the party for better or worse during a challenging economic period.
Canadians are bracing for the document to echo and put a price tag on key themes from the party's campaign platform: strategic investments for long-term economic growth, jobs and productivity; measures to boost the middle class and lift children out of poverty; and shifting to a green economy.
But all eyes will be on the fine print details of how much — and how fast — the Liberal government will deliver.
Topping the opposition parties' wish list is more tax relief for "job creators," as well as supports for provinces like Alberta hit by collapsing oil prices that need subsidies and supports for pipelines and market access.
NDP finance critic Guy Caron said the fiscal forecast has changed significantly in the last five months, and he'll be watching for how the Liberals adapt their priorities.
Among the NDP's key demands are more social housing, more funding for First Nations education and enhanced supports for low-income seniors
A key question swirls around the budget's bottom line — how big will the deficit be, and how long will it take to erase it?
The Liberal election campaign promise was to run "moderate" deficits of no more than $10 billion a year for three years before balancing the books again. But last month Finance Minister Bill Morneau said the deficits will be much larger than expected.
Morneau said the government will post a smaller than projected deficit of $2.3 billion for 2015-16, down from the $3-billion deficit projected in November's fall fiscal update.
But he said that deficit will balloon to $18.4 billion in 2016-17 and $15.5 billion in 2017-18 — and that is before any new budget spending.
During an interview with Bloomberg News this week, Prime Minister Justin Trudeau said the budget will be built around the premise that now is the time for government spending, not austerity.
But opposition MPs warned there will be political consequences for going beyond the $10-billion deficit pledge, suggesting the electorate could call the Liberals on making too many promises they couldn't keep.
