Canadians are set to take a look at federal finances when Deputy Prime Minister Chrystia Freeland presents her budget on April 16.

The government is trying to rein in spending after years of massive budget deficits during the COVID-19 period that doubled the national debt to nearly $1.2 trillion – a debt burden that costs Ottawa tens of billions of dollars annually to finance in an era of economic recession and rising interest rates.

Freeland’s fall economic statement forecasted a budget deficit of $38.4 billion for the upcoming 2024-25 fiscal year. This figure could rise – or fall – depending on how the government plans the budget before the penultimate year of its mandate.

The budget will give Canadians some insight into the government’s priorities in what could be one of the last spending documents before the anticipated 2025 election.

The New Democratic Party has agreed to support the Liberals until next year, and this could be followed by a national vote after the end of the supply and confidence agreement.

Freeland has participated in months of formal consultations before the budget with interested parties competing for more federal funds.

While there has been an ongoing campaign to cut spending – key estimates announced last week indicate the government wants to “refocus” or shift spending by about $4.8 billion annually by 2026-2027 and beyond – the government is likely to reveal some new funding to reduce spending and direct funds to its priority files.

The government has attempted to address the housing supply crisis through a series of initiatives, including the housing acceleration fund that sends additional money to cities that change their planning rules to allow more homes to be built.

The government also raised the federal sales tax on new rental construction, a costly measure some homebuilding companies say is already making a difference in building costs.

Freeland may allocate more funds to programs that enhance the country’s housing stock at a time when the Canadian Mortgage and Housing Corporation (CMHC) says the country needs 3.5 million additional units by 2030 to restore housing affordability.

The government faces political pressure from Conservative leader Pierre Poilievre, who has made housing issues a major plank of his political agenda.

Freeland said at a press conference last week: “The biggest thing in a family budget is paying the mortgage or rent. We just need to build more and faster. We are committed to that. And we are doing it.”

The Federation of Canadian Municipalities (FCM), the group representing cities and towns, has also asked the government to renew some infrastructure programs that are set to expire – a cash infusion they say they need to keep pace with population growth.