The National Post reports in its Monday edition that the federal government plans to pay for its recent big-ticket spending through a combination of economic growth and deficit increases, Finance Minister François-Philippe Champagne says. The Post's Simon Tuck writes that prior to officially kicking off the government's prebudget consultations this year, Mr. Champagne told reporters in Ottawa that the government is "investing" in the Canadian economy to ensure various new spending items can be paid for. He also repeated his argument from recent months that Canada has the strongest fiscal position in the G7, implying that increased deficit spending is affordable. "I think Canadians can understand that we have a strong fiscal position, and we're investing in the things that will generate growth to the country," the Finance Minister said. Mr. Champagne also cited the benefits of removing interprovincial free trade barriers and strategic defence procurement that improve innovation as ways to boost growth. "We'll do that in a very smart way." Economists remain skeptical that long-term investments will produce short-term gains, and that high-cost projects will be paid for through any means other than increased borrowing.
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