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Canada gov't could avoid confidence vote with slim mini budget, says source

Published 10/10/2024, 03:06 PM
Updated 10/10/2024, 03:36 PM
© Reuters. FILE PHOTO: General view of the Centre Block on Parliament Hill in Ottawa, Ontario, Canada September 17, 2020.  REUTERS/Blair Gable/File Photo

By David Ljunggren

OTTAWA (Reuters) -A Canadian mini budget later this year might contain no spending measures, an unusual move that would deprive the opposition of another chance to topple Prime Minister Justin Trudeau, a source familiar with the matter said on Thursday.

Finance Minister Chrystia Freeland has not yet taken a final decision on what the mini budget will contain, said the source, who requested anonymity given the sensitivity of the situation.

A slimmer than normal fall budget would avoid a parliamentary vote, potentially giving Trudeau more time to improve his popularity with voters before an election that must be held by late next year.

In the past, mini budgets, also known as Fall Economic Statements, have contained spending measures that the House of Commons elected chamber must approve. They are usually unveiled in late November or early December.

Trudeau's minority Liberal government, suffering badly from voter fatigue after nine years in power, has already survived two confidence votes and a mini budget would usually be considered another opportunity to bring him down.

A Liberal loss in the House would trigger an election at a time when polls show the official opposition Conservatives are on track to win a landslide victory. The next election is not due until the end of October 2025 and Liberals say their focus is on staying in office as long as possible.

Freeland indicated on Tuesday that she did not necessarily feel the mini budget needed new spending measures.

Since parliament resumed last month, she told reporters, the government had announced 30-year amortizations for insured mortgages for first-time home buyers and a multi-billion dollar carbon tax rebate for businesses.

"Those are two really, really meaty measures. If I were today presenting a Fall Economic Statement that contained those two measures as our headline measures, I can assure all of you you'd have a lot to write about," she said.

The source said one real option on the table was a statement with no spending measures but stressed the government had not taken a position on that possibility yet.

© Reuters. FILE PHOTO: General view of the Centre Block on Parliament Hill in Ottawa, Ontario, Canada September 17, 2020.  REUTERS/Blair Gable/File Photo

Katherine Cuplinskas, Freeland's spokeswoman, said she could not speculate on what would be in the mini budget.

"The federal government is delivering on the priorities of Canadians - on housing, affordability, and economic growth. The Fall Economic Statement will contain the next steps of our plan to deliver on those priorities," she said.

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