The Financial Post reports in its Wednesday edition that Canadians, it seems, have voted for the status quo, but the lasting impact of the election may be the more permissive attitude toward looser fiscal policy. The Post's Kelsey Rolfe quotes BMO chief economist Douglas Porter saying in a Tuesday note to clients, "The most significant development from an economic perspective during the election campaign was the broad tilt to increased fiscal spending proposed by almost all major parties." All three major parties campaigned on running continued deficits for the next five years and introducing billions of dollars in new spending. The Liberals promised to spend $78-billion between 2021 and 2026 on health care, subsidized child care and climate commitments, among other promises, which would be offset in part by an increase in revenues of $25-billion. The party promised to reduce the deficit from $156.9-billion in fiscal year 2021-22 to $32.1-billion by fiscal year 2025-26. The Parliamentary Budget Officer had upgraded its projections of Canada's GDP growth in August, and also adjusted the baseline to a $138.2-billion shortfall for 2021-22. The Liberals revised the deficit back up due to new campaign priorities.
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