Canada’s 2018 budget was released on February 26th. It projects an estimated deficit of $17.8 billion for 2018. In subsequent years the budget deficit is expected to decrease, but only to $13 billion.
Canada’s economy is currently strong. Unemployment is at record lows and GDP growth is as high as could be expected.
Conventional Keynesian economics would expect a budget surplus under these conditions. Admittedly the budget deficit is lower than had been expected a year ago due to the strong economy. This was seen as a signal for the Trudeau government to increase spending and introduce new programs.
Continue reading “Canada’s 2018 budget: virtue signaling all the way”