06:57 AM EST, 12/17/2024 (MT Newswires) -- It was a "wild day" on Monday in Canadian politics, with Finance Minister Chrystia Freeland resigning ahead of the Fall Economic Statement (FES), noted TD.

This didn't preclude the FES from being tabled, giving investors some window into the government's economic plan in the face of a second United States Donald Trump administration.

However, political uncertainty looms large with a significant cabinet shuffle and a parliamentary election looming, stated the bank.

The government broke its pledge to keep the budget deficit below C$40 billion in 2024-25, pointed out TD. That said, the deficit is expected to ease from C$61.9 billion in FY 2023-24 to C$48.3 billion in FY 2024-25, or 1.6% of gross domestic product, to C$23 billion in 2029-30.

The government did meet its obligation of a falling debt-to-GDP ratio, which is expected to have peaked at 42.1% in FY 2023-24, before moving lower over the remainder of the budget forecast.

A total of C$23.3 billion in net-new measures were announced, including C$1.6 billion on a GST rebate, C$1.3 billion on tightening border security and C$18.4 billion to incentivize investment. These measures more than offset the impact of a stronger 2024 hand-off and lower-than-expected interest rates, leading to a net deterioration in the budget balance over the forecast horizon, added TD.