This report does not constitute a rating action. Key Rating Factors Credit context and assumptions Base-case expectations A rebound in the economy will allow the government to refocus on fiscal sustainability efforts. Post-pandemic economic growth will lead to strengthening budgetary performance. We expect economic growth will return to pre-pandemic levels in the outlook horizon, as the vaccination rates increase and social distancing measures are lifted. Although operating deficits will fall as pandemic-related spending wanes and revenues increase, high after-capital deficits will persist with a larger capital program. While the near-term focus is on supporting a recovery fueled by economic growth, we expect that the government will resume its cost management efforts once pandemic-related spending requirements subside.Canadian provinces? relationships with upper
