'We will be vigilant in making sure Canada remains the best place to invest, create jobs and do business': Morneau
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OTTAWA (Reuters) — Canada's Liberal government tackled long-term growth challenges on Tuesday in a budget aimed at boosting women in the workforce and diversifying trade, while keeping its fiscal powder in case of an economic shock like the demise of NAFTA.
Finance Minister Bill Morneau's third budget outlined slight deficit improvements without much in the way of new spending, refusing to blink in the face of U.S. corporate tax cuts and trade uncertainty that strike fear into Canadian companies.
"We know businesses are concerned about the outcome of the North American Free Trade Agreement talks, and tax changes in the United States," Morneau said in a prepared budget speech.
"We will be vigilant in making sure Canada remains the best place to invest, create jobs and do business — and we will do this in a responsible and careful way, letting evidence, and not emotion, guide our decisions," he added.
The budget blueprint, which is bound to be implemented given the Liberal's parliamentary majority, maintained a C$3 billion ($2.4 billion) a year fiscal cushion, effectively a rainy day reserve to guard against any unexpected event that could hurt the government books.
Even with the cushion, the projected deficit in 2018-19 declined to C$18.1 billion from C$18.6billion forecast in October, a restrained target unlikely to have any impact on financial markets or the Bank of Canada's rate tightening path.
