With Canada facing possible recession, Liberals can’t afford to shrug off the oilsands

National Post: The federal budget is usually delivered before the start of the new fiscal year on April 1.

This year might be an exception. No date has been announced and the uncertainty created by the coronavirus means it might be a good idea if Bill Morneau saves his breath to cool his porridge.

Former finance minister John Manley said on CTV Power Play that he would be inclined to delay the budget until we have a better sense of how severe the impact of the virus is going to be.

When it comes, it may bear little resemblance to the spending plan Morneau thought he was going to deliver. The first emergency rate cut by the U.S. Federal Reserve since the financial crisis is a stark reminder of the risks the virus poses to economic activity.

But unless Morneau needs to act to avert a meltdown, the expectation is that the budget will be more transitional than transformative.

The finance minister does not have much fiscal room, given the deficit is already forecast to come in at $26.6 billion this year. more