Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said the upcoming 2023 federal budget "will exercise fiscal restraint" while making "significant" investments in the Canadian healthcare system and building a clean economy.

In a speech detailing the Liberal government's priorities ahead of the budget release next week, Freeland said the budget would include "targeted inflation relief" to help Canadians who are severely burdened by rising prices.

She reiterated Prime Minister Justin Trudeau's commitment last week that the massive financial document to be released will include affordability measures aimed at "directly helping Canadians."

Also, although the federal government remains mindful of the need not to add fuel to the fire of inflation, Freeland promises "to exercise financial restraint."

Speaking about the state of the Canadian economy, the Finance Minister described the near-record low unemployment rate in Canada post-COVID-19 recession but acknowledged that inflation "remains very high."

She also said that high interest rates are having their intended effect of slowing the economy, but this means federal government revenues are lower and are no longer in a position to sustain the massive pandemic-era support programs.

Spending priority on health and clean economy:

Freeland pointed out that with economic prudence in mind, the 2023 federal budget will continue to prioritize "two major and necessary investments": funding healthcare and building Canada's clean economy.

The minister also confirmed that, as expected, the budget will include one-year healthcare funding deals worth $196 billion recently secured with all provinces and territories, and a one-time $2 billion Canadian health transfer to urgently address pressures on children's hospitals, emergency rooms, and surgical centers.

The biggest concern in this regard is the U.S. Inflation Reduction Act, which entails heavy American investment in clean energy and zero-emission industries.

On the same subject, Freeland said this global clean technology axis, and the recently emphasized need to build critical supply chains with allied democracies in light of the pandemic and Vladimir Putin's war in Ukraine, has placed Canada in a unique position to benefit.