OTTAWA, Dec. 18 (Xinhua) — Canada has pledged 1.3 billion Canadian dollars (910 million U.S. dollars) to bolster border security, even as its deficit swelled nearly 50 percent beyond target.
The Canadian federal government’s recently released 2024 Fall Economic Statement announced the security spending promise, although it also showed that the country’s deficit stood at 61.9 billion Canadian dollars (43.5 billion U.S. dollars) in 2023-2024, way above the target of 40.1 billion Canadian dollars (28.2 billion U.S. dollars).
U.S. President-elect Donald Trump has previously threatened to impose 25-percent tariffs on all Canadian and Mexican imports unless both countries take measures on irregular migration and drug trafficking.
Canada’s newly sworn-in Finance Minister Dominic LeBlanc promised his top priority will be lowering the cost of living for Canadians and strengthening ties with the United States.
Most of the deficit overshoot was because of one-time costs tied to booking contingent liabilities for settling various Indigenous legal claims, local media reported.
The statement projects the debt-to-GDP (gross domestic product) ratio to decline in the coming years, from 41.9 percent in 2024-25 to 38.6 percent in 2029-30, and keeps the deficit under 1 percent of GDP in 2026-27 and future years.
It also announced investments in research and development, support for Canada’s innovators and start-ups, and incentives for businesses to invest in the country.
Monday morning hours before tabling the statement, Chrystia Freeland abruptly resigned from the post of finance minister in a letter to Canadian Prime Minister Justin Trudeau, saying they were at odds about the best path forward for the country.
