Chamber of Commerce Urges Ottawa to Reduce Spending by 15 Percent

August 12, 2024 TruthUSA

Ottawa should reduce spending by 15 percent and aim to balance its upcoming budget to enhance Canada’s productivity and competitiveness on the global stage, according to the Canadian Chamber of Commerce.

The group suggested that the Cabinet should undergo a review to decrease funding for outdated or inefficient programs and limit hiring to achieve the 15 percent goal. This recommendation was outlined in a submission to the Commons finance committee, as originally reported by Blacklock’s Reporter.

The chamber is pushing for cuts that haven’t been seen since the austerity measures implemented by former Prime Minister Jean Chretien in 1995, which led to the elimination of 45,000 federal jobs.

They also advised against supplementing government spending with increased taxes, emphasizing the importance of moving towards a balanced budget to foster innovation and growth.

Finance Minister Chrystia Freeland has highlighted that Budget 2024 focuses on constructing more homes, enhancing affordability, and generating quality employment opportunities.

The 2024 budget, presented by Freeland on April 16, includes $53 billion in new spending over the next five years, with $8.5 billion allocated to housing initiatives. The budget anticipates a $40 billion deficit for this fiscal year.

“Budget 2024 aims to create a better Canada for every generation, where younger individuals can progress, where their efforts are rewarded, and where they can own or rent a home of their own—providing everyone an equal opportunity for a better middle-class life,” Freeland explained in April.

Tax Overhaul

The chamber also urged the government to conduct a thorough review of the tax system, which they believe is hindered by exemptions and conditions that impede growth by deterring innovation and investment.

“Canada requires a straightforward, just, and principled tax structure that serves the best interests of Canadians, both now and in the future,” the report stated.

The chamber emphasized the need to control spending and taxes as Canada’s competitiveness diminishes, citing the country’s lowest GDP per capita among G7 nations, which declined by 1.7 percent per person in the past year.

“Productivity in Canada has decreased in 11 of the last 14 quarters. Without productivity improvements, Canadians work harder yet become poorer, hindering their ability to achieve their objectives,” the report emphasized.

Additionally, the chamber recommended modernizing Canada’s regulatory framework to encourage investment, economic growth, and job creation, as well as reducing internal trade barriers and permitting reinvestment of capital gains in new housing projects.

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