Prime Minister Justin Trudeau is giving no indications of plans to rein in government spending after a critical report by the parliamentary budget officer questioned the LiberalsB次元官网网址� case to spend tens of billions in planned stimulus.

The Liberals had promised up to $100 billion in economic stimulus, subject to a series of spending guardrails to determine whether the economy had recovered enough from the COVID-19 pandemic.

Budget officer Yves GirouxB次元官网网址檚 report released Wednesday morning said those benchmarks, largely tied to the labour market, appear to have been met. He said that suggests any stimulus should be wound down before the fiscal year ends in March.

Giroux added that the rationale for the planned stimulus of up to $100 billion no longer exists, unless the government has changed the policy yardsticks.

Speaking at a late-morning news conference, Trudeau pivoted away from questions about the spending guardrails, and pointed instead to the LiberalsB次元官网网址� plan to keep the debt as a percentage of the economy, known as the debt-to-GDP ratio, on a steady decline.

B次元官网网址淲eB次元官网网址檙e going to continue to make sure that we are keeping CanadaB次元官网网址檚 balanced books healthy, while at the same time being there to support Canadians,B次元官网网址� Trudeau said.

B次元官网网址淏ecause, indeed, supporting Canadians through this crisis, supporting workers, supporting seniors, supporting small businesses, leads to better economic growth and performance once weB次元官网网址檙e through this pandemic.B次元官网网址�

The labour market ended 2021 having surged past pre-pandemic levels, while other economic indicators suggest the economy may be hitting capacity. Too much stimulus could add strains by juicing consumer spending for in-demand goods, many of which are in short supply because of global supply-chain problems.

The economy is past the stage where stimulus is needed, and may be counterproductive, said Rebekah Young, ScotiabankB次元官网网址檚 director of fiscal and provincial economics.

Young expected the government to start signalling its budget intentions alongside a shift in tone to investing in measures to ease capacity constraints helping to drive up inflation rates.

B次元官网网址淏ut these are medium-term at best,B次元官网网址� she said. B次元官网网址淪o the onus is squarely on the Bank of Canada to tackle this one. Perhaps the best-case scenario is that the Finance ministry at least sits on the sidelines for now.B次元官网网址�

Conservative finance critic Pierre Poilievre told reporters Wednesday that he wanted to see the Liberals roll back spending and not forge ahead with stimulus seen in countries like the United States.

B次元官网网址淛ust because other governments are ruining their money and driving up the cost of living for their people doesnB次元官网网址檛 mean that we have to do the same,B次元官网网址� he said.

Statistics Canada reported Wednesday the annual rate of inflation in December hit a 30-year high amid warnings from economists that rates could still yet climb.

Robert Asselin, senior vice-president of policy with the Business Council of Canada, said inflation readings are a warning for the government against pursuing aggressive, short-term spending plans.

B次元官网网址淭he challenge that lies ahead is to not let policy errors harm the impressive recovery we have seen over the last few months,B次元官网网址� said Asselin, TrudeauB次元官网网址檚 former budget adviser.

Billions in new tax revenues and higher oil prices have elbowed more spending room in federal books, which the PBO estimated could finance $57.8 billion in new measures over the next five years.

GirouxB次元官网网址檚 office estimated that remaining spending related to the LiberalsB次元官网网址� campaign platform would amount to $48.5 billion over the same stretch.

Since the start of the pandemic, GirouxB次元官网网址檚 office estimated the government has spent or planned to spend $541.9 billion in new measures, about one-third of which, or $176.6 billion, is not related to COVID-19.

Scrutinizing that spending was made more difficult in GirouxB次元官网网址檚 mind by the late release of the governmentB次元官网网址檚 audited financial statements for the preceding fiscal year. The government held on to the documents for two weeks after their cabinet sign-off, even as MPs debated extra spending measures, Giroux said.

He recommended Parliament rewrite transparency laws to require the financial statements be made public no later than the end of September each year to avoid a repeat.

B次元官网网址擩ordan Press, The Canadian Press