Ottawa: The federal government tabled its $491 billion budget on Tuesday in the House of Commons.

Finance Minister Chrystia Freeland announced $59.5 billion of new spending over the next five years as part of a narrowly focused budget that also promises to find savings in the public service and increase tax revenues.

The budget has three main focuses — the clean economy transition, health care and cost-of-living relief.

The budget includes close to $60 billion of new spending over the next five years.

To finance these priorities, the Liberals are promising to find $9.8 billion of savings within the public service. They also are introducing a range of tax measures, including ones aimed at wealthier individuals and corporations, that together would increase revenues by $11.7 billion.

The federal deficit is projected to decrease to $14 billion by 2027-28 from $43 billion, while the debt-to-GDP ratio is expected to rise slightly in the coming year before falling to 39.9 per cent in 2027-28, down from 42.4 per cent.

While the Liberals’ budget presents a more restrained approach to finances, the projected deficit is at risk of growing if the promised savings aren’t found and the economy slows more than expected.

The budget downgrades previous economic forecasts to account for a shallow recession this year, but economists warn a larger downturn could weigh considerably on federal finances. — Canadian Press

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