The Financial Post reports in its Saturday, April 20, edition that former governor of the Bank of Canada David Dodge is concerned with Ottawa's new budget, saying the increase in spending will make it more challenging for the BOC to combat rising prices. A Bloomberg dispatch to the Post reports that Mr. Dodge says the budget, along with the provincial budgets, will not help in dealing with inflation. The budget proposed by Finance Minister Chrystia Freeland includes billions of dollars in new spending on housing, defence and other areas, with slightly higher deficits than previously projected. The provincial governments of Ontario, Quebec and British Columbia have followed a similar path, with all three releasing plans that involve significantly higher borrowing. Credit rating firm DBRS Morningstar says the spending boost may be "counterproductive" as the BOC tries to bring inflation back to its 2-per-cent target. Ottawa is expecting 3.8-per-cent growth in nominal gross domestic product this year, versus a previous forecast of 2.4 per cent. DBRS says that will give a boost to government tax revenue, but "the budget siphons off these projected gains and channels them toward increased spending initiatives."