OTTAWA—Canadian Finance Minister Bill Morneau is expected to unveil a restrained budget on Tuesday, with just enough spending to assuage middle class voters under pressure from rising rates—while keeping his powder dry amid uncertainty over NAFTA.
With the domestic economy going strong and the Bank of Canada hiking rates, the Liberal government is in a balancing act of slowly reining in deficits while taking steps to bolster long-term growth as U.S. tax cuts and protectionism threaten Canadian exports and competitiveness.
