74% of Small Businesses Concerned About the Federal Budget Deficit due to Lack of Plan to Balance

October 30, 2024 TruthUSA

About three out of four small businesses in Canada say they are concerned about a lack of planning for a balanced federal budget, according to the Canadian Federation of Independent Business (CFIB).

Canada’s deficit in the first four months of the 2024-2025 fiscal year was $7.29 billion, up drastically from $1.24 billion for the same period last year, the Finance Department said in September.

A new CFIB report examining the financial performance of the Liberal government and business concerns across the country found that 81 percent of small businesses think the government needs to focus on balancing the budget and paying down debt.

“The federal government must introduce a timeline to balance the budget. Our economy and our entrepreneurs cannot sustain this level of debt forever,” CFIB vice president of national affairs Jasmin Guenette said in an Oct. 30 press release.

“Too much money is spent to manage our debt. That’s money that could instead be used to reduce taxes and the cost of doing business,” Guenette said.

The CFIB makes several recommendations to the Liberal government based on the survey results, including development of a plan to balance the budget with indicators measuring progress, legislated government spending limits, conducting internal reviews to reduce the size and price tag of the federal public service, avoiding growth in social programs, and freezing federal department budgets.

The report also said the government could government assets like land, buildings, and Crown corporations.

Most small business owners (92 percent) said the government should not introduce more taxes or fees on businesses or individuals to increase revenue.

“Increasing taxes is not a sustainable solution,” Guenette said. “It’s well beyond time for the government to get its fiscal house in order.”

The CFIB said it is concerned that high government spending could lead to higher taxes and hinder entrepreneurship in Canada.

“Entrepreneurs know that today’s deficits result in tomorrow’s new or higher taxes. Recurring deficits deter future entrepreneurs from entering the market and current ones from making the investments to grow their businesses,” report co-author and CFIB policy analyst Juliette Nicolaÿ said in the release.

The statistics were based on a survey conducted in September with 2,120 respondents.

CFIB represents 97,000 small businesses across Canada.

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