The budget update tabled by Deputy Prime Minister and Finance Minister Chrystia Freeland on Thursday envisions a return to a balanced budget by 2027. It also includes new measures aimed at reducing the cost of living and transitioning to a green economy, while preparing for a potential recession . “The Conservatives will support ordinary people – their wages, their homes, their savings – and we will vote against this inflationary scheme,” Conservative leader Pierre Poulievre said in the House of Commons after Freeland’s statement was issued.

		Read more: Inflation will shape Canada’s economic fate, Ottawa budget update shows 		
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			Inflation will shape Canada’s economic fate, Ottawa’s budget update shows

The opposition leader criticized the Liberals for not matching the $30.6 billion in new spending over six years outlined in the update with flat budget cuts, which he said would continue to push up inflation and hurt average families. Story continues below ad He also rejected the government’s explanations – also made by central bankers and economists around the world – that the war in Ukraine and other external factors were the main causes of the inflation affecting Canadians. 4:49 The Free Country wants to reassure Canadians about the economic future “What’s to blame is a prime minister who has no control over Canadians’ money,” Poilievre said in French. He later pointed to the continued high cost of living Canadians face in groceries, home heating and fuel, which he argued the budget update would not address. “Canadians have no money and this prime minister is out of touch,” he said. 0:59 Fall Economic Statement: Federal Student Loan Interest Abolished, New Canada Worker’s Quarterly Allowance Created The NDP, meanwhile, said the economic statement did not go far enough to reduce costs for Canadians. Current trend

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Story continues below ad The party has spent months calling for a higher windfall tax on big companies, including energy companies and grocers that have seen their profits soar during the COVID-19 pandemic, to ease the burden on families – an issue the Liberals have not faced directly. “For Canadians who were told time and time again that the prime minister would have their back in this fall economic statement, he has actually turned his back,” NDP Leader Jagmeet Singh told reporters outside the House of Commons after Freeland’s speech. 4:51 Singh says Trudeau government ‘turned its back’ on autumn economic update, but will still vote yes Singh said the NDP is also looking to eliminate the GST on home heating, another party priority this fall as winter approaches. Poilievre also addressed rising heating costs, but blamed both the Liberals and the NDP for supporting a carbon tax on fossil fuels. Story continues below ad Despite his criticism, Singh confirmed that his party would vote with the government to approve the budget update. The NDP partnered with the Liberals on a supply and confidence deal last year that will last until the next scheduled election in 2025. 4:10 Fall Economic Statement: Canada to lead investment in clean energy industries Freeland defended the statement after delivering it to the House of Commons, pointing to the elimination of student loan interest and Canada Workers Benefit advances for lower-income Canadians as examples of government measures to help address the cost of living. He also said GST tax credit payments, which were temporarily doubled last month, will begin arriving in Canadians’ bank accounts on Friday. For the current financial year, the interim budget update projects a deficit of $36.4 billion, about $16 billion lower than expected in the spring budget thanks to high inflation and a strong economic recovery that is boosting government revenues. Story continues below ad

		Read more: Student loan interest relief and more: What’s new in the fall financial statement?

The fiscal update says federal debt as a share of GDP is 42.3 percent in fiscal 2022-23 and is projected to decline steadily until it reaches 37.3 percent in fiscal 2027-28. Longer term, the federal government projects a budget surplus of $4.5 billion in the 2027-28 fiscal year. This is the first time the Liberals have forecast a balanced budget since they took office in 2015. — with files from Global’s Craig Lord and the Canadian Press © 2022 Global News, a division of Corus Entertainment Inc.