Feds turn to infrastructure bank for economic help amid deeper deficit outlook
OTTAWA — The Trudeau government’s latest update on federal finances shows that slow growth is taking a toll on the books — but they say they have a cure: a long-term plan to attract billions in new private-sector investment.
Finance Minister Bill Morneau laid out plans Tuesday to lift the sluggish economy with help from a new infrastructure bank. He pledged to prime the bank’s pump with $35 billion worth of public money as a way to bring in foreign capital.
But at the same time, he warned Canadians that tougher-than-expected economic hurdles still lie ahead.
Morneau tabled fresh projections that included an additional $31.8 billion of red ink over the next five years. The deficit for 2016-17 is expected to be about $25 billion, and the statement foresees shortfalls every year across the outlook.