Although Finance Minister Chrystia Freeland stuck to her previous pledge to keep the budget deficit below $40bn in the new fiscal year, she nonetheless spent the small windfall afforded to the government thanks to stronger-than-expected revenue growth. With new net spending of just $5bn, or 0.2% of GDP, in this fiscal year, however, Budget 2024 is unlikely to prevent the Bank of Canada from cutting interest rates in June, which seems increasingly likely following the encouraging CPI data released earlier today.
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