Chrystia Freeland, Minister of Finance. THE CANADIAN PRESS/Adrian Wyld

The federal government released its fall economic statement on Thursday, a document that forecasts a budget surplus in the 2027-2028 fiscal year.

The update projects a deficit of $36.4 billion for this fiscal year. Deficits will decline over the next four years, the document says, before a budget surplus of $4.5 billion is achieved in 2027-28.

It would be the first surplus since the Liberals formed government seven years ago.

However, it all depends on how Canada navigates a possible recession. Over a six-year period, the government plans to spend $30.6 billion.

The word “inflation” appears more than 100 times in the document, according to The Canadian Press, suggesting the government’s direction.

The update tabled by Finance Minister Chrystia Freeland also includes two new measures: a tax credit for the production of clean hydrogen and new investments to generate growth in the manufacture of electric vehicles and batteries. . The document indicates that they are both still in development.

There were details of a new tax credit for investments in clean electricity generation, energy storage systems and low-carbon heating equipment. This tax credit will cost nearly $6.7 billion over the next five years and will take effect on the day the 2023 federal budget is tabled.

The financial update also says the government will permanently waive interest on student loans and apprentice loans from April 1. This includes loans that are currently being repaid.

The collection of interest on student loans has been suspended in 2021 until March next year due to COVID-19.

The update says an average college student will save $410 a year from the move. The elimination of interest is expected to cost $2.7 billion over five years.

The update also says the government plans to spend $1 billion in the current fiscal year on provincial claims related to Post-Tropical Storm Fiona, and $26.3 million over five years on orders. , fines and lawsuits against non-compliant employers in the trucking industry.

— With files from The Canadian Press


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