The Government of Canada (GOC) is spending about $33.1 billion to sustain its operations, with the CBC receiving $178 million according to a GOC statement. Meanwhile, a global credit rating agency warns that more deficit spending, even if "urgently required for the public good" under the Carney Liberals, could "pressure" Canada's credit profile."Her Excellency the Governor General in Council, on the recommendation of the President of the Treasury Board, under subsection 30(1) of the Financial Administration Act, directs that a special warrant be prepared for signature by the Governor General, authorizing payment, effective May 16, of $33,102,676,499 from the Consolidated Revenue Fund — urgently required for the public good," the GOC states in part on its website.The spending announcement came before Statistics Canada reported bad economic news. Canada's unemployment rate rose to 6.9% in April, up from 6.7% in March, marking the highest rate since 2016, excluding the pandemic period.."Canada’s incoming Liberal government has promised significant fiscal loosening that would worsen already growing deficits," Fitch Ratings said in a recent report. "Canada’s credit strengths provide substantial room to weather a fiscal or economic shock, but increased structural deficits would pressure its credit profile."Fitch says if Carney Liberal policies are enacted, they would increase the 2025 and 2026 general government deficits by 0.4 percentage points and 0.8 percentage points of GDP, respectively. This compares to Fitch's projections under current policy of 2.7% of GDP in 2025 and 2.4% in 2026.The projections include federal deficits of 1.7% of GDP ($54.6 billion) this year and 1.3% ($43.4 billion) next year."As a minority government, the Liberals will need to compromise with other parties to pass legislation, increasing the likelihood that enacted policies will differ from their platform," Fitch said. "Nonetheless, further fiscal loosening seems inevitable."
