By Fergal Smith
TORONTO (Reuters) - Canada will make prudent choices in its budget even as it takes measures to help those who are hit by the coronavirus outbreak, Finance Minister Bill Morneau told business leaders on Friday.
"Canada, more so than any other country in the G7, has economic resiliency and fiscal firepower at its disposal," Morneau said in a speech in Toronto. "We intend on maintaining this advantage. This means that we will be judicious and responsible in how we make investments in this budget."
Morneau is due to present the budget by the end of the month. On Friday, he said the virus had altered the economic outlook with respect to a month ago, and he pledged government support to those who are forced into quarantine.
Also due to the virus, Morneau said he would increase the risk provision in the budget. Canada includes a cushion in its annual spending package for risk, which in December was set at C$3 billion for the upcoming fiscal year.
Morneau said he would rather do too much than too little to counter the effects of the virus. His comments follow those on Thursday by Bank of Canada Governor Stephen Poloz, who said the country's economic resiliency would be "seriously tested" by the epidemic.
On Wednesday, the central bank slashed its overnight rate by half a percentage point and said it was prepared to cut further if necessary.
Prime Minister Justin Trudeau won re-election last year promising budget investments to support growth and to fight against climate change while at the same time keeping the debt on a downward path as a percentage of gross domestic product.
