Whereas the Chrétien government used balanced budgets as a guiding fiscal anchor, the Trudeau government has not had an effective fiscal rule imposing discipline on its spending, taxing, and borrowing decisions, resulting in the federal government being less prepared to respond to the current recession.
canadian federal budget
Between 2013 and 2017, foreign investment in Canada declined by 55.1 per cent.
Finance Minister Bill Morneau’s budget missed an opportunity to convince investors that Canada remains a desirable place to invest.
The reasonable approach to balancing the budget is to find savings and reduce spending—not raise taxes.
Since the Liberals’ first forecast in 2015, expected GDP for 2017 has dropped by $62 billion or $1,700 per Canadian.
At $29.4 billion, the projected budget deficit in 2016/17 is larger than the cumulative budget deficits projected for the entire mandate in the Liberal platform.
This year alone, spending is projected to increase by $20.5 billion, a 7.6 per cent jump.
Since 2007/08, Canada’s federal debt has grown by $176 billion to $692 billion in 2015/16.
The just-released Parliamentary Budget Officer report projects deficits in every year from 2016/17 to 2020/21.