federal budget won’t fuel inflation but may be missing the bigger economic picture as a recession looms and the country’s cost-of-living crisis continues to squeeze Canadians, experts say.The budget unveiled by Finance Minister Chrystia Freeland on Tuesday promises to cut more than $15 billion in spending from the government’s books, but also abandons plans from the fall economic statement that projected a map to balanced budget.
The federal deficit is projected to decrease by up to $14 billion in the downside scenario by 2027-28 from $43 billion.“If you look at the size of the deficit that they are projecting going forward, they’re not really adding materially to inflation relative to the path that we were already on,” said Craig Alexander, the former chief economist of Deloitte, in an interview with Mercedes Stephenson that aired Sunday on The West Block.