Canada's Fiscal Future: Challenges Amidst Election-Year Temptations

Canada faces challenging fiscal targets amid election-year pressures, including a Christmas handout by Prime Minister Trudeau, increased defense spending, and potential U.S. tariffs. Rising cost of living and immigration curbs further strain projections. Economists warn these factors might force higher taxes and affect social programs, stressing fiscal responsibility.

Canada's fiscal targets are under strain as Prime Minister Justin Trudeau's recent Christmas handout, coupled with immigration restrictions, drags on economic growth.

With additional pressures like increased defense spending and potential U.S. tariffs, Canada's debt and deficit projections are precarious, worry economists, especially in an election year.

The fiscal metrics influence government capabilities for social programs and tax levels, despite not being top voter priorities. Economists warn that these financial challenges require careful navigation.

(With inputs from agencies.)