1. Edelman Ottawa | 155 Queen St. Suite 1302 | Ottawa, ON K1P 6L1 | 1.613.569.9000
This year’s Fall Economic Statement
comes at an opportune moment
for the Liberal Government. The
Statement outlines huge gains for
the Canadian economy. The Liberals
look to take advantage of increased
revenue to further invest in the
economy. At the same time, the
Government used the Statement
to address recently announced tax
changes which created their largest
controversy since taking office two
years ago.
It’s clear that the Government remains
committed to the formula that won
them a majority in 2015: government
investment over debt reduction.
Overall, the economy is expected
to grow by 3.1 per cent in 2017—Its
best performance in over a decade.
The update stated that the strong
economic growth seen over the last
year will provide the government with
an additional $47 billion over the next
five years — $8.9 billion this year alone.
Of this, $1.8 billion will be allocated
towards new spending over the next
year. The deficit forecast has also been
updated, down to $19.9 billion for
2017-2018.
The Liberal spending plan includes
investments in the form of tax relief
and anti-poverty programs.
2017 FEDERAL FALL
ECONOMIC STATEMENT
OUR PERSPECTIVE
REAL GDP GROWTH
James Moore
Special Advisor, Public Affairs
+1.604.648.3401 | James.moore@edelman.com
Christopher Vivone
Senior Vice President
613.569.9000 | chris.vivone@edelman.com
Darcy Walsh
Senior Vice President & General Manager
613.569.9000 | darcy.walsh@edelman.com
2. Edelman Ottawa | 155 Queen St. Suite 1302 | Ottawa, ON K1P 6L1 | 1.613.569.9000
2017 FEDERAL FALL ECONOMIC STATEMENT
STAKEHOLDER RESPONSE
HIGHLIGHTS
Canada Child Tax Benefit (CCB)
›› The Canada Child Tax Benefit will be indexed to
inflation starting in July 2018—two years earlier
than planned, and will see an additional $5.6
billion in additional benefits through to 2023.
However, indexing the tax-free benefit will cost the
Government an additional $5.6 billion between
2018-19 and 2022-23.
Working Income Tax Benefit
›› The Working Income Tax Benefit will see an
additional $500 million in funding per year,
starting in 2019. Additional details on increased
benefits for current recipients and an expansion
on eligibility will come in the 2018 Budget.
Small Business Tax Cut
›› Minister Morneau confirmed details previously
announced on the lowering of the small business
tax rate — down from 10.5% 10% in 2018 and to
9% in 2019.
“Greater economic growth and a lower deficit are good
news for all Canadians. It is especially encouraging for the
businesses that are carrying our economy forward, often with
great-risk and little reward.”
Perrin Beatty, President and CEO of the Canadian Chamber of Commerce
“More spending. Higher deficits. And no end in sight to the ever-mounting Liberal debt.”
“It’s terrible news. Justin Trudeau cannot be trusted on tax breaks for Canadians. It’s
terrible news that the deficit has doubled with no plan to limit it.”
Andrew Scheer, Leader of the Conservative Party of Canada
“This fiscal update can be summarized into two words: Morneau Shepell.
[This] is simply and attempt by the Liberal Government to distract, to
change the channel, from the heavy questioning that the Minister is under right now.”
Guy Caron, NDP Parliamentary Leader / Jagmeet Singh, Leader of the NDP
“Good day for the Liberal government and the finance minister, these are fantastic
growth rate numbers. Unemployment is low and the economy is expected to grow
by 3%. Politically this fiscal update is a good move for the Liberal government but
they must maintain and be prudent with their books.”
Kevin Page, President and CEO, Institute of Fiscal Studies and Democracy