John Manley appeared on BNN Bloomberg to talk about the tough choices Canada's federal government faces as it crafts a 2023 budget in a high-interest rate, high-inflation environment.
He says the finance minister has "some tough decisions to make" in a budget that makes good on spending commitments and applies fiscal restraint needed to bring down high inflation.
The spending needed to keep up with the United States in the transition to a carbon-neutral economy is a big concern, as the Bank of Canada continues its fight to bring inflation down to its target two percent.
John says, "There are some big spending requirements, all in the context of ... the Bank of Canada trying to put a foot on the brakes, while the fiscal positioning is kind of like putting the foot on the gas pedal."