The Globe and Mail reports in its Wednesday edition that Prime Minister Justin Trudeau argued for his government's spending but did not defend Finance Minister Chrystia Freeland, on the same day she gave the clearest signal yet that the minority Liberals will not meet their promised deficit target. The Globe's Robert Fife and Marieke Walsh write that Opposition MPs seized on a Globe report Tuesday that said tensions have risen between Ms. Freeland and the Prime Minister's Office about increased spending on political strategies such as the two-month GST holiday on toys, alcohol, and food and a promised $250 rebate for working people earning $150,000 or less. The two measures would cost $6.28-billion. The report said Ms. Freeland is concerned that this kind of spending has put what she previously called her $40.1-billion "fiscal guidepost" in jeopardy and that her department had characterized the goodies as economically unwise. Analysts believe the feds will clock a higher deficit for last year than promised. "Ottawa's deficit targets are toast," reads a headline from BMO Economics. "Why are Ottawa's fiscal guardrails getting watered down yet again? It's the desire to spend," said BMO senior economist Robert Kavcic.
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