Slower Population Gains Will be a Drain
Public spending soared through the first three-quarters of 2024 as spending on healthcare, education, and public administration all posted healthy gains. Investment, meanwhile, surged due to stronger spending on infrastructure projects around the country—particularly healthcare facilities and transportation infrastructure.
Will the drastic reversal in immigration policy make it more difficult for governments to balance their books? How much will the sales tax holiday between December 14, 2024, and February 15, 2025, push down federal revenues? How many years will the federal government remain in deficit, and what will be its spending priorities? How long will provincial governments also collectively remain in deficit? Will new program spending be limited over this time? And what is the outlook for municipal governments?
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