Ottawa has room to add another $15 billion to stimulus spending, says economist – FINANCIAL NEWS-ecozik.com
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Ottawa has room to add another $15 billion to stimulus spending, says economist

The Canadian government could pump an additional $15 billion a year in stimulus spending into the Canadian economy and not hurt its fiscal health, says Bank of America Merrill Lynch.

The Liberal government might have more room to manoeuvre on stimulus spending without damaging its fiscal health, say economists.

Prime Minister Justin Trudeau and his government are going to unveil their budget in the coming months. Originally, Trudeau’s election platform made room not less than $5 billion annually in new infrastructure spending to help pump much needed stimulus into Canada’s struggling economy. 

But Bank of America Merrill Lynch economist Emanuella Enenajor states that, based on her calculations, the federal government could spend around an additional $15 billion annually and still meet its goal of lowering the debt-to-GDP ratio.

“Although there continue to be many unknowns with the timing and content from the Federal budget, we argue that Ottawa has room to invest more than initially announced, assisting to ease the pain sensation from the oil shock,” she said.

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