The small increase to Canada’s deficit resulting from the latest Federal budget will have a minimal impact on the country’s credit profile. The general government deficit is still expected to decline and the debt burden is still forecast to fall by around 2ppts through fiscal years 2026 and 2027, Fitch Ratings says. Canada’s 2024 budget announced nearly CAD53 billion (1.8% of 2023 GDP) in new program spending through fiscal years 2028 and 2029. This will expand fiscal deficits by a total of CAD10.2 billion (0.4% of 2023 GDP) over this period, reflecting the government’s desire to spend an unanticipated upswing in ... (full story)