The whole country (except Nunavut) will be encouraged to over-invest in public transit since, under the cost-sharing formula, new dollars will only cost 50 cents.
Budget projects an increase in total federal debt of approximately $113 billion over the next five years.
The new federal Liberal government will table its first budget next week, with media reports suggesting a deficit triple the amount promised during the election campaign.
Per capita federal net debt (in 2015 dollars) grew from $577 in 1870 to $19,302 in 2015.
Prime Minister Trudeau recently mused that not only will the $10 billion deficit ceiling be broken, but the return to a balanced budget by 2019/20 is now in question.
Today, newly minted federal Finance Minister Bill Morneau released his first Update of Economic and Fiscal Projections. Unfortunately, the outlook isn’t positive.
The 2007/08 recession knocked many Canadian governments off the sound policy footing of balanced budgets, falling debt levels, and tax relief. After a sustained period of deficit spending, the federal government now seems poised to balance the budget.
Premier Couillard's government will table its first budget on June 4 and early signs suggest it's not going to be business as usual.