As expected the fall fiscal update revealed the federal government’s bottom line is in the red at around $19.9-billion dollars, down from the 2017 budget forecast of $28.5-billion dollars.
But it also shows $8.9-billion going into the government’s pocket, which came from a surprisingly strong economy in 2017-18.
What wasn’t mentioned from Finance Minister Bill Morneau was when the books will be balanced. In 2015, Justin Trudeau and the Liberals promised to operate at a deficit no larger than $10-billion dollars and have the budget balanced by 2019.
The Trudeau government has around $14.9 billion in new money to spend which will go towards the Canada Child Benefit, among other tax benefits.
They will start increasing the Child Benefit two years early by indexing it to inflation as of July 2018, which is expected to cost $5.6-billion over the first 5 years.
Introduced in 2016, the Canada Child Benefit gives a monthly payment to families with a child under 18; the amount all depends on a family’s net income.
The Liberal government will also boost it’s working income tax benefit by $500-million dollars, starting in 2019.
The working income tax benefit is a refundable tax credit for low income Canadians which also serves as an incentive for those unemployed to join the workforce.