Canadian Government Outlines Stimulus Package
January 27, 2009
Today the Canadian Government released their economic stimulus package which will result in the first Canadian Budget deficit in 11 years. The deficit which is expected to reach a total of C$32bn, is an attempt by the Conservative Government to help pull the economy out of recession. With a minority Government this particular budget is of greater significance as the failure to garner support from any or all of the three opposition parties could result in a call for a vote of no confidence. Of the total package about one third will be in the form of tax cuts aimed at low and middle income earners, with a further C$12m allocated to infrastructure spending. Initial reports cite that the New Democrats and Bloc Quebecois have rejected the package while the more influential Liberals are yet to announce their stance. Little market reaction has been witnessed as a result of this stimulus plan.