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M. Continuo

Trudeau government promises fiscal plan suited to tough times


    OTTAWA (Reuters) - Canada's Liberal government, unveiling its plans at the start of the new Parliament, promised on Friday to pursue a fiscal plan "that is responsible, transparent and suited to challenging economic times."

    The formal announcement, delivered just hours after fresh data showed the economy was struggling, made no mention of whether the Liberals would stick to their campaign pledge to limit budget deficits to C$10 billion (£5 billion) a year.

    Liberal leader Justin Trudeau won a parliamentary majority in the Oct. 19 election promising to return Canada back into deficit in order to confront an economy suffering from low prices for oil and other commodities.

    After contracting in the first half of the year, the economy grew again in the third quarter. But the final quarter of the year has gotten off to a weak start, evidenced by disappointing export and jobs data released on Friday.

    Trudeau's government laid out its plans in what is known as the Speech from the Throne.

    In it, it also pledged that indigenous peoples would be more fully engaged in reviewing and monitoring major natural resource development projects. The fate of three oil pipeline projects are in question, and Trudeau had said they require social license or popular approval.

    (Reporting by Randall Palmer and David Ljunggren; Editing by Sandra Maler)