Canada's Trudeau says will grow deficit to fund vote pledges

[MONTREAL] Canadian Prime Minister Justin Trudeau on Sunday unveiled his financial policy ahead of elections next month, saying that if he retains power he will run a larger deficit to pay for campaign pledges.

Trudeau, leader of the Liberal Party, is locked in a close race to secure a second term against the Conservatives, led by rookie Andrew Scheer.

According to Liberal Party projections, the C$19.8 billion (S$20.6 billion) deficit for the current fiscal year would rise to C$27.4 billion next year before falling slightly over the following three years.

"That is the responsible choice for Canadians because it has allowed us to invest in people, in their communities, and in your future," Mr Trudeau said of recent budget deficits.

"We also understand that it's important to remain fiscally responsible, and responsible about our investments."

The Liberal Party plans extra public spending to fund tax cuts, combat climate change and help the middle-class and students.

Ahead of the October 21 vote, Mr Trudeau's campaign has been rocked by three separate images of him in blackface makeup dating back to when he was a student and young teacher.

Some analysts suggest that the Liberals have recently yielded support among younger voters - a key demographic that helped Mr Trudeau, 47, sweep to power in 2015 - to the fourth-placed Green Party.

AFP