Big bets on high-growth

Photo: The Canadian Press

The Trudeau government unveiled a budgetary crystal ball Wednesday that foresees slightly smaller deficits and a growth-lifting plan that places "big bets" on what the feds predict will be high-potential sectors.

Finance Minister Bill Morneau's second budget projects shortfalls of $23 billion for 2016-17, $25.5 billion next year and $24.4 billion in 2018-19, not including a $3-billion contingency fund — forecasts that have each shrunk between $1.5 billion and $2.1 billion since the fall.

Later in the outlook, the annual deficits are expected to be little bigger than previously thought.

But the government once again failed to outline a plan to return the books to balance, which it promised to do in its 2015 election platform.

The budget will "make big bets in high-growth sectors of the economy, including clean technologies, digital industries and agri-food, to secure Canada's place as a world-leading centre for innovation," the document reads.

Ottawa is banking on that plan to improve the country's growth trajectory and eventually help eliminate the deficit.

The promising sectors identified by the feds also included health sciences, clean resources and advanced manufacturing. The budget called for the creation of growth strategies and more available cash to help each of these industries prosper.

The government also pledged $125 million to launch an artificial intelligence institute.

To provide further support, the budget contained commitments to expand federal investments in venture capital, to ease access to public procurement contracts for young, innovative firms and to develop an intellectual-property strategy, which is considered critical by some industry players.