BUDGET TRIES TO EASE ANXIETY

LIBERAL GOVERNMENT WANTS TO PREPARE CANADA FOR FUTURE

Finance minister delivers budget to get Canadians ready for a changing world

The Trudeau government unveiled a budgetary crystal ball Wednesday that foresees slightly smaller deficits and a growth-lifting plan that places “big bets” on what the feds predict will be high-potential sectors.

Finance Minister Bill Morneau’s second budget projects shortfalls of $23 billion for 2016-17, $25.5 billion next year and $24.4 billion in 2018-19, not including a $3-billion contingency fund — forecasts that have each shrunk between $1.5 billion and $2.1 billion since the fall.

Later in the outlook, the annual deficits are expected to be a little bigger than previously thought.

But the government once again failed to outline a plan to return the books to balance, which it promised to do in its 2015 election platform.

The leaner-than-expected deficit projections are largely tied to Canada’s stronger economic outlook.

However, the government is also anticipating changes in this year’s budget to boost revenues via new tax measures and higher premiums on the employment insurance program.

Ottawa’s bookkeepers also found another $933 million over six years, thanks to previously planned defence commitments that were not spent as quickly as initially expected.

And while the document contained little new spending, it did offer fresh details on commitments made in the Trudeau government’s curtain-raising 2016 budget, as well as sharpened strategies for enhancing skills development and driving the so-called innovation economy.

“To make the most of the opportunities that the new economy offers, the government will equip Canada’s workers with the skills and tools they need to succeed,” reads the 278-page budget.

“It will also make big bets in high-growth sectors of the economy, including clean technologies, digital industries and agri-food, to secure Canada’s place as a world-leading centre for innovation.”