Canada is a good argument for the stimulus
The Trudeau government has reached into the coffers of the government last year to provide stimulus through infrastructure and tax credits for children. Maybe it was the luck of timing, maybe it was a good thing, but anyway, Canadian growth has been much stronger than expected.
As a result, the fiscal deficit was $ 17.8 billion in the final assessment, significantly less than the $ 23 billion that was forecast in the spring. It is still a big hole in the comparison of the sum of 1 billion deficit the government inherited, but growth of 3.0% this year, it is a worthwhile return.
Revenues declined 0.7%, while spending on programs increased by 6%
The federal debt is currently $ 631.9 billion, which puts the debt-to-GDP to 31.2%.
I believe more and more governments will fall in love with deficits as long as they are coupled with the stimulus measures or tax reductions (depending on their leanings). Just last week, we saw Ted Cruz give up fiscal conservatism.