Where Is the Fall Economic Update? Freeland Blames Delay on Conservatives

Wednesday, December 4, 2024, 11:01:00 AM

Canadian Finance Minister Chrystia Freeland declined Tuesday to commit to releasing the government’s traditional fall economic update, citing an ongoing Conservative Party filibuster in Parliament over transparency concerns.

The delay comes as Canada faces mounting fiscal challenges, with economists projecting larger budget deficits than initially forecast. The 2023-24 fiscal year deficit is expected to exceed the government’s $40 billion target, with preliminary data suggesting it could reach $50 billion.

The previous Conservative government, under Stephen Harper, tended to unveil the fall update at events outside of Ottawa. Pressed about why she couldn’t do that, Freeland said the “usual practice” is to make major policy announcements in the legislature.https://t.co/BYsRiNol1d
— Paul Vieira (@paulvieira) December 4, 2024

“We are very keen to deliver a fall economic statement,” Freeland told reporters, but blamed the parliamentary impasse for hampering the government’s ability to proceed. The Conservative-led filibuster stems from the Liberal government’s reluctance to release documents related to a conflict-of-interest case concerning the so-called “green slush fund.”

Freeland also announced that the final figures for the fiscal year ended March 31 would be released by December 31, notably later than the usual October or November timeline for the public accounts report.

The delays in financial reporting come at a critical time for Canada’s economy. Recent analyses from major financial institutions paint a concerning picture. Desjardins Group warned that fiscal policy under the minority Liberal government “looks increasingly adrift,” while Royal Bank of Canada identified a potential C$20 billion shortfall in government budget planning through 2029.

The government faces additional pressure from President-elect Donald Trump’s threats to impose a 25% tariff on Canadian imports unless the country addresses border security concerns, potentially requiring increased spending on military and border measures.

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