Budget 2016 is just the beginning, says Morneau

Since the release of the federal budget, the biggest question has been whether going into deficit to boost the economy is a good move—especially given Canada’s weak growth prospects.

Read: Liberals made public finances harder to scrutinize: Watchdog

But Minister of Finance Bill Morneau stands by this tactic. In a speech for the Empire Club and Canadian Club of Toronto, he conceded we’re facing lacklustre growth and challenging demographics trends. Still, he adds, the best way to kick start the economy is to support the middle class as well as “make investments to get more people working in the medium term and enhance growth in the long term.”

Read: Federal budget 2016: Testing promises

Further, “Budget 2016 is just the beginning.” Morneau says investments in the economy are manageable because we have low interest rates and, compared to other G7 countries, a low debt-to-GDP ratio.

Going forward, the government plans to support tech hubs, such as Kitchener-Waterloo, says Morneau. As a result, Canada will benefit from increased innovation, and research and development.

For more from Morneau, check out the live tweets below. And, follow @advisorca for more news and event coverage.

Plus, for more on the budget, read:

Don’t panic about corporate-class funds

Taxpayers will hold the bag for Liberal stimulus, says opposition

Small biz hit yet again by changes to eligible capital property

Another tool gone: Linked notes

Live tweets from post-budget event with Bill Morneau

.@Bill_Morneau will soon take the stage to discuss the budget and why it was important @Empire_Club @CdnClubTO

Whether you’re a company or country, it’s important to invest in growth, says @CdnClubTO speaker. This budget was focused on that #cdnpoli

Reviews on #budget2016 have been strong, regarding the new approach to fiscal policy, says @Bill_Morneau #cdnpoli @Empire_Club @CdnClubTO

#Budget2016 was based on two goals: investing in people and families, and in growing the economy over long term, says @Bill_Morneau #cdnpoli (for more on the Canada Child Benefit, read: Who will benefit from the new family tax regime?)

. @Bill_Morneau adds, “When economy works for middle class, it works for everyone.” Infrastructure investment also shapes future #cdnpoli

.@Bill_Morneau says regions such as Waterloo are crucial to Canada. From tech hubs, we’ll see innovation, R&D and new start-ups #economy

#Budget2016 also stresses #education is important, says @Bill_Morneau (For more, read: Budget’s education measures take from the rich, give to the poor)

Also, check out how #Budget2016 will impact clients’ #retirement years: How budget 2016 will impact your client’s retirement.

“#Budget2016 is just the beginning. Investments in economy are needed now, and debt-to-GDP ratio is lowest of G7 countries”: @Bill_Morneau

Now, we’ll have Q&A: First, why go into deficit at tough times? @Bill_Morneau says we’ve had weak growth and demographics challenging. So, we need to make investments that enhance growth in long term, but get more people working in medium term, adds @Bill_Morneau #cdnpoli

Still, @Bill_Morneau says @liberal_party will monitor debt-to-GDP ratio and invest prudently #cdnpoli @Empire_Club @CdnClubTO

One way to boost Canada is to match federal investments with those of institutional investors, for optimal impact: @Bill_Morneau #economy (Read: When diversification drags returns and How institutional investors use ETFs)