Freeland doesn't commit to meeting her own deficit target in fall economic statement

Finance Minister Chrystia Freeland has not committed to meeting the $40.1-billion deficit target she set for the government last year, as the Liberal government appears to unshackle itself from constraints on spending ahead of a federal election.

Finance Minister Chrystia Freeland has not committed to meeting the $40.1-billion deficit target she set for the government last year, as the Liberal government appears to unshackle itself from constraints on spending ahead of a federal election.

Freeland said Tuesday she expects the fall economic statement, which she will present on Dec. 16, will show a declining debt-to-GDP ratio.

"In next week's fall economic statement, you will see that the government is maintaining its fiscal anchor. Specifically, reducing the federal debt as a share of the economy over the medium term," Freeland told reporters in a news conference.

The finance minister said she expects to meet the 42.1 per cent debt-to-GDP ratio projected in the spring for the 2023-24 fiscal year.

When asked if she would also meet her deficit target, Freeland wouldn't answer.

"I chose my words with care, because it is important to be clear with Canadians. It is important to be clear with capital markets," she said.

The finance minister announced a set of fiscal guardrails last fall in response to pressure from the Bank of Canada and economists to avoid fuelling inflation with too much spending.