Government sources told the National Post that a $250 rebate, for 18.7 million working Canadians, will be excluded from Monday’s fiscal update, which may face even further delay. 

MP Chrystia Freeland, who held the finance portfolio for several years, dodged questions on the alleged tensions with Trudeau no more.

BREAKING: Deputy Prime Minister Chrystia Freeland has resigned from the federal Cabinet after being removed as Finance Minister by Prime Minister Justin Trudeau on Friday.

MORE: https://t.co/KwvsjomsKf pic.twitter.com/Whjfgm2zPd

— Rebel News (@RebelNewsOnline) December 16, 2024

The Member of Parliament for University–Rosedale resigned from cabinet early Monday morning, addressing recent “Ottawa gossip” in a statement posted to X.

“Upon reflection … the only honest and viable path for me is to resign from cabinet,” she wrote. “For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada.”

Rumours of tensions between the PMO and Freeland emerged in recent months amid supposed efforts to recruit Carney as her replacement. Neither office provided comments to the media on the matter.

Katie Telford, the Prime Minister’s chief of staff, complained Freeland could not effectively communicate the party’s fiscal policies.

Trudeau's former finance minister Bill Morneau said the feds "probably" splurged too much during the COVID-19 pandemic. He admitted the consequence of printing hundreds of billions is a potential recession.https://t.co/uQhpYVSgLH

— Rebel News (@RebelNewsOnline) January 9, 2023

Government sources clarified that walking back tax relief keeps the government within spending boundaries. One of three self-imposed guardrails from April includes a $40.1-billion deficit target that is not expected to hold in Monday’s fiscal update.

The same government source did not rule out future relief next year. Neither Freeland’s office nor the PMO would confirm these claims.

The final deficit for the 2023/24 fiscal year may exceed anywhere from $46.4 billion to $55.8 billion, according to the Parliamentary Budget Officer (PBO) and Bank of Montreal. Additional sources believe spending may surmise $60 billion this fiscal year.

“Suddenly, the guardrail was broken,” Poilievre told the House of Commons on Wednesday. Trudeau, a former drama teacher, claimed the Opposition leader likes to “make up little dramas,” but did not address the widening rift with Freeland, nor the deficit. He defended the “GST holiday” as “giving Canadians a tax break.”

The federal government proposed rebates on November 21 for workers earning less than $155,000, which was noticeably absent from Bill C-78, An Act Respecting Temporary Cost Of Living Relief. Starting December 14, the bill temporarily removes GST for two months on some goods.

Freeland recently said it was “really hard to decide” what to tax, with the reprieve expected to cost taxpayers $4.8 billion. In her statement, she called the tax holiday a “costly political gimmick."

Dan Kelly, president of the Canadian Federation of Independent Business, also called it a failed “political calculation.” A recent Leger poll revealed Canadians were also unenthused by the measure. 

Trudeau threw Freeland under the bus last week in place of Carney, her alleged replacement. In September, the prime minister named Carney economic advisor, leading Canada’s economic recovery.

Chrystia Freeland is asked about being replaced in Trudeau's cabinet by Mark Carney after reports of tension between the two emerged.

"I really don't spend a lot of time focusing on Ottawa gossip," she says. pic.twitter.com/ith9yIBE0U

— Rebel News (@RebelNewsOnline) December 13, 2024

As recently as Thursday, Freeland refused to address the tensions with Trudeau. “I really don't spend a lot of time focusing on Ottawa gossip,” she said.

“Will you fight back against this effort to replace you?” a reporter asked Thursday. Freeland did not directly answer the question.

Freeland, who considers Carney a close friend, endorsed his appointment as economic advisor. She contested media reports in July, stipulating her job was on the line.

Trudeau called her “a close friend and ally” but acknowledged efforts to recruit Carney for federal politics. “I think he’d be an outstanding addition.”

Conservative MP Michelle Ferreri burns Finance Minister Chrystia Freeland for being publicly humiliated by "fake feminist" PM Justin Trudeau after the Liberals brought on WEF globalist Mark Carney to serve as a "phantom finance minister."https://t.co/vD78U4ZuZQ pic.twitter.com/wedYwC8HIn

— Rebel News (@RebelNewsOnline) September 17, 2024

Two sources told the Globe and Mail that the finance portfolio would likely entice Carney to join the federal government. He currently serves as Trudeau’s economic advisor but has not been offered Freeland’s job as of writing. 

A cabinet shuffle could happen as early as Wednesday, reported CBC News. Meanwhile, the Globe says two shuffles are on the table: one that includes Carney and one that does not.

Carney, who lives in Ottawa, did not rule out a run for elected office in October, having navigated the 2008/09 global financial crisis and the Brexit referendum as Bank governor. 

He recently lobbied for trillions of net zero investment dollars as the UN Special Envoy for Climate Action and Finance.

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