Feds release fall economic statement with deficit of more than $36 billion

The federal government released its 2022 fall economic statement Thursday, projecting a deficit of more than 36-billion dollars.

The deficit will shrink over the next four years, before turning into a budget surplus of 4.5-billion in 2027-28.

The economic statement pledges tax credits for clean electricity and low-emitting hydrogen production.

Finance Minister, Chrystia Freeland also addressed the current economic climate, and rising inflation.

“Canada cannot avoid the global slowdown any more than we could have avoided covid, once it began infecting the world, but we will be ready. Indeed, we are ready,” Freeland said. “This is the first time since the liberals came to power seven years ago that a federal budgetary surplus had been forecast.”

That’s because, for the past seven years, our government has been reinforcing Canada’s social safety net.

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The Liberals’ fiscal update also disclosed the amount of money the government expects to spend on its new immigration strategy it unveiled earlier this week.

The government plans to boost immigration to a record 500-thousand arrivals in 2025, with the majority to be skilled workers who can help fill labour shortages in health care, manufacturing and the building trades.

Support for the processing of applications and settlement of new permanent residents will cost 1.6-billion dollars over six years, and 315-million in new, ongoing funding.