By Paul Vieira


OTTAWA-Canadian Prime Minister Justin Trudeau said Wednesday the Liberal government's annual budget plan, to be unveiled next month, will focus on "fairness," arguing too many young people believe they are falling behind in the current economic landscape.

The Liberal government also promised further measures in the budget to accelerate housing construction in the country, given a sizable shortage of units due in part to immigration-fueled population growth.

Trudeau's remarks in Vancouver, British Columbia, along with an accompanying announcement, signal the government will try to pivot with targeted spending programs and rule changes to help younger Canadians. Financial and polling data show younger Canadians are abandoning plans to buy a home, and have gravitated to the prime minister's chief rival, Conservative Party leader Pierre Poilievre. Poilievre's Conservatives hold a sizable lead in public-opinion polls over Trudeau and the incumbent Liberals.

Trudeau said the budget would focus on "fairness," with an eye to helping younger Canadians dealing with rapid rent increases and elevated levels of house prices. "The system is stacked against them," the prime minister said of the country's youth.

"When you look out at the economy these days, it just doesn't feel very fair, with inflation and high housing costs," Trudeau told a Vancouver crowd, where he introduced measures aimed at providing relief for Canadian renters. "It feels like there are some people who are doing really, really well, but a lot of people feel stuck or worse, like they're falling behind. And when you look at who's feeling it the most, it's hard not to think about the young people."

Most lawmakers on the Canadian legislature's finance committee urged Finance Minister Chrystia Freeland in February to impose surtaxes on corporate profits from the grocery and energy sectors in the 2024 budget plan, arguing those companies' pricing behavior helped fuel inflation. Inflation has slowed for two straight months, in January and February, although shelter costs remain elevated.

Trudeau said the measures helping renters "is just one of the things that we're going to be doing in this upcoming budget to build an economy that is fair for every generation." Rents recently climbed at their fastest pace in 40 years, and in February rose nearly 8% from a year ago.

The Bank of Canada has warned that bigger-than-anticipated spending plans by governments could thwart efforts to wrestle inflation down to its preferred 2% target.


Write to Paul Vieira at paul.vieira@wsj.com


(END) Dow Jones Newswires

03-27-24 1356ET