Feds Urged to Curb ‘Scattergun Spending’ in Second Wave of COVID-19

A couple stroll down a near-empty St-Denis Street in Montreal, closed to traffic in efforts to attract patrons, on June 8, 2020. Economists are advising fiscal discipline and spending reforms as Canada’s deficit soars. The Canadian Press/Paul Chiasson

News Analysis

Shortly after the throne speech on Sept. 23, Fitch Ratings said new spending pledges announced by the government will propel the debt and deficit beyond the credit rating agency’s estimates in June, when Canada was downgraded to AA+ from AAA due to “deterioration of Canada’s public finances” because of the pandemic.