Federal Liberals to deliver 2020 budget on March 30, Morneau says

OTTAWA — The federal Liberals will deliver the first budget of their minority mandate at the end of the month.

Finance Minister Bill Morneau told the House of Commons on Wednesday that the federal Liberals will deliver the 2020 budget on March 30.

Morneau has said the budget will have a climate lens, but the outbreak of the novel coronavirus has changed some spending plans.

The finance minister said last week the budget will likely include an increased contingency cushion should the economic hit from COVID-19 be prolonged and deep.

The cushion amounts to projected revenues the government sets aside annually as a shock absorber if the money doesn’t materialize due to an economic downturn, and also counts against the deficit.

The deficit is projected to be $28.1 billion before any new spending the Liberals will add to meet platform commitments, such as the first steps towards a national pharmacare program.

Speaking in the House of Commons, Morneau touted the federal government’s fiscal position as a way to deal with economic challenges facing the country from the novel coronavirus outbreak and a drop in oil prices.

“We’re trying to ascertain the depth and the length, the duration of this challenge,” Morneau told reporters afterwards.

“Obviously as facts emerge they are going to enable us to decide how we should best respond. The budget will be an important time for responding.”

The spending blueprint will also be a political test for the Liberals who need the support of enough opposition MPs to get the budget approved. Otherwise, the government would fall on the confidence vote.

Multiple bank forecasts now have GDP growth below one per cent for the entire year. Morneau said the budget will update economic forecasts to show what the situation is today, and how that forms the basis on the government’s planning.

An oil price war between Saudi Arabia and Russia that has lowered the cost of crude below budget projections is further compounding problems for the economy. The combination of low oil prices and slower growth could shave billions from federal revenues.

This report by The Canadian Press was first published March 11, 2020.

The Canadian Press

federal budget

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A message from the Advocate publisher

In good times and bad, The Red Deer Advocate has been here… Continue reading

Sunchild First Nation man reported missing

Contact Rocky Mountain RCMP

Parliament may need to be recalled again to approve wage subsidy program

OTTAWA — Canadians are supposed to get more details today of the… Continue reading

US death toll eclipses China’s as reinforcements head to NYC

NEW YORK — The U.S. death toll from the coronavirus climbed past… Continue reading

WATCH: Firefighters, RCMP help Red Deer boy celebrate 3rd birthday

Firefighters and RCMP officers helped a Red Deer boy celebrate his third… Continue reading

Alberta Health Services provides COVID-19 prevention tips

Alberta Health Services has a number of recommendations for people amid the… Continue reading

Alberta government website has latest COVID-19 statistics

Red Deer Advocate readers can stay up to date on the COVID-19… Continue reading

Fiscal transparency would help

Way back before the COVID-19 crisis came upon us, the federal government… Continue reading

A message from Waskasoo Medical Clinic

A Message From Waskasoo Medical Clinic Waskasoo Medical Clinic (including our walk-in… Continue reading

UPDATE: Anti-tax group calls for MPs, senators to donate scheduled pay raises to charity

Bill C-30, adopted 15 years ago, mandates the salary and allowance increases each calendar year

Michael Dawe: Public projects often play a role in creating jobs during tough times

At the end of October 1929, the New York stock market collapsed… Continue reading

Sylvan Lake photographer captures family life from the front steps

Deb McNeil is taking porch portraits to share the uniqueness of families during COVID-19

Montreal Impact midfielder Shamit Shome making most of time alone

Montreal Impact midfielder Shamit Shome has been making the most of his… Continue reading

Most Read