If Ottawa wants to tighten its purse, spending rules and more taxes could help: experts

As the Liberal government drafts its spring budget, fiscal experts say it should consider stricter spending rules and higher taxes to improve federal finances.

The budget comes at a time when the government is facing pressure to rein in spending so as to not work against the Bank of Canada's inflation-fighting efforts.

The central bank has aggressively raised interest rates over the last year to dampen spending by consumers and businesses. Excessive fiscal stimulus could reverse some of that work.

Canada could also experience a recession this year that would affect government revenues. Faced with these challenges, Finance Minister Chrystia Freeland has stressed that her government is committed to fiscal responsibility.