The rate of growth in government spending is currently below 2%. The potential growth rate of supply in the economy is approximately 2%. If growth in government spending remains below that rate, it won't significantly contribute to inflation.
What I'm saying is that, upon examining the plans of the federal and provincial governments for the 2024 year, we estimate that the rate of growth in budget spending will be approximately 2.5%, which is greater than our forecasted growth rate of potential output.
If all those plans come to fruition, budgetary spending could grow faster than supply, and that wouldn't help moderate inflation.