Anthony Furey Predicts Lax Fiscal Restraint in the Upcoming Budget
Commentary
The Trudeau government is already offering freebies ahead of the April 14 federal budget announcement. Free contraceptives and more free child care have been announced, with more giveaways expected as the Liberals attempt to win back voters.
However, don’t expect to see any signs of fiscal restraint in what could be described as Trudeau’s “desperation budget,” given his poor polling numbers.
Canada’s deficit is once again on the rise as interest rates increase. Recent Statistics Canada data shows that 10 percent of all revenue raised is now being spent on interest payments for our debt. In the last fiscal quarter alone, nearly $25 billion was spent on interest payments.
This is a significant amount. For comparison, the City of Toronto’s entire yearly operating budget is $17 billion. This taxpayer money could be allocated to essential services like health care, infrastructure, or returned to Canadians as tax relief.
Nearly a decade ago, Justin Trudeau promised modest deficits of only $10 billion per year for a couple of years before returning Canada to surplus. However, Trudeau, who was leading the third-place Liberals at the time of the 2015 election, never followed through on this commitment.
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Trudeau and former Finance Minister Bill Morneau significantly increased deficits, falling short of balancing the books.
Historically, the federal government had success in bringing fiscal stability through the 1990s budgets of Liberal Prime Minister Jean Chretien and Finance Minister Paul Martin, as well as Stephen Harper’s achievement of a surplus in 2015.
Trudeau’s intentional deficits squandered the opportunity for fiscal responsibility passed on by Harper and Oliver, leaving Canada vulnerable to financial shocks like those from the COVID-19 pandemic and subsequent interest rate hikes.
Trudeau’s lack of a plan to balance the books and projected continuous deficits pose a long-term risk to Canada’s economy and standard of living.
Warnings from financial experts about escalating debt emphasize the urgent need for a course correction in government spending.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
