ANALYSIS: Previewing Ottawa’s Upcoming Fiscal Update

Ottawa will present its fall economic statement (FES) on Nov. 21 amid a backdrop of weakening growth, higher interest rates, elevated inflation, and ongoing wars in Ukraine and Gaza. Given the current government’s history of running deficits, analysts urge spending restraint and are skeptical about the government’s ongoing expense review exercise. The FES typically provides a progress update since the last federal budget and also offers commentary on the economy. Serving as a mini-budget, it usually includes some new program spending as well, though major announcements are reserved for the annual budget. “Common sense would say there has to be some restraint,” said Philip Cross, former chief economic analyst at Statistics Canada and senior fellow at the Macdonald-Laurier Institute, in a Nov. 14 interview....