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We're very pleased with our economic situation, it's what we would have hoped for. Finance Minister Bill Morneau

An extra $1.8 billion is already booked this year in new spending since the spring budget, and starting next year, hundreds of millions will be spent on boosting two benefit programs: the Canada Child Benefit and the Working Income Tax Benefit.

Asked why he isn’t focusing more on getting to a balanced budget, Morneau told reporters the government’s strategy of boosting the economy through new spending has clearly been shown to work, given the buoyant growth.

“We’re very pleased with our economic situation, it’s what we would have hoped for,” he said.

“We now are able to show a very positive fiscal track … We’re able to do that by doubling down on what we’ve done for Canadian families, improving the Canada Child Benefit so people have more money in their pockets, and helping those who are struggling to get by.”

The child benefit, which provides tax-free monthly payments up to a maximum of $6,400 a year for a child under six, started in July 2016 and has been credited by many — including Bank of Canada Governor Stephen Poloz — with boosting consumer spending. The program paid out $23 billion to 3.3 million families in its first year.

The government now says it will index the child benefit to inflation two years faster than planned. In one example outlined, indexation would give $560 more in a year to a single parent making $35,000 who has two children. The move is expected to cost the government $400 million next year, and about $1.4 billion each year after.