Federal government to table fall economic statement on Nov. 21

Finance Minister Chrystia Freeland is expected to table the federal government's fall economic statement on Nov. 21, a mini-budget that will serve as an update on federal finances and contain new measures that reflect the government's priorities.

Freeland has promised that the economic statement will focus on housing and affordability, two issues dominating federal politics.

The Liberals already have announced some measures pertaining to housing over the last several months, but all eyes will be on any additional steps they take to ease the housing shortage.

The federal government is also facing fiscal pressures from a slowing economy and scrutiny over excessive government spending, and Freeland has promised to prioritize fiscal responsibility.

The senior director of Canadian economics for Desjardins, Randall Bartlett, said the economic outlook has shifted considerably, putting the federal government in a tricky spot when it comes to its finances.

"Economists now expect that economic activity is much weaker in 2024 than the federal government anticipated in budget 2023, which is going to ultimately weigh on revenues and lead to a larger deficit than was anticipated at the time in the budget," Bartlett said.

The parliamentary budget officer projected last month that the federal deficit would rise to $46.5 billion in 2023-24, up from an estimated $38.7 billion for 2022-23.

On Thursday, Treasury Board President Anita Anand tabled the federal government's updated spending plan in Parliament, which includes $20.7 billion in additional spending for the current fiscal year that will need to be approved by parliamentarians.

Following up on a promise in the spring budget to find savings in the public service, the Treasury Board says $500 million in travel and professional services funding has been "refocused and removed" across 68 departments this fiscal year.