Trudeau government—and provincial governments across Canada—can learn from past fiscal consolidations
The Trudeau government’s recent fiscal update forecasted a $343 billion deficit this year.
Budget include an additional $185 million in transfers from Ottawa.
Total provincial government deficits will reach an estimated $63.0 billion this year.
Governments elected via proportional representation are more likely to run deficits.
The federal deficit was approximately $19 billion in both 2016/17 and 2017/18.
Ontario’s debt burden is forecasted to increase by $48.2 billion between 2018 and 2023.
Government debt redistributes resources from the entire population to the wealthy holders of the debt.
The federal government expects the deficit in 2018-19 to reach $18.1 billion and grow next year to $19.6 billion.
The annual deficit from a recession could increase from its current level of $19 billion to almost $50 billion.