It appears Canada is getting further and further away from having a balanced federal budget.
The Liberals released their latest budget on Tuesday afternoon, and it contains the various goodies you would expect. Some of it is good news. Gender equality in wages is a step forward.
We’re also all for improving the lives of Indigenous Canadians, although we’re a little skeptical on whether the Liberals have the right approach to make it happen.
Higher taxes for cigarettes? That will usually get the support of the majority of the public. More money for mental health? Most will be supportive as we gain more understanding about mental health issues.
And a study on a national Pharmacare program is a step in the right direction, although it will likely be some time before such a program is implemented.
But it seems like this federal government wants to spend, spend and spend some more, and rack up an 11-figure deficit in the process. The deficit for the 2018-19 fiscal year is projected to be approximately $18 billion, and it seems like the Liberals have little intention, or desire, to return to a balanced budget.
These definitely aren’t the Liberals of the Jean Chretien and Paul Martin years when it comes to budgeting.
Now, when it comes to governments, there is a time and place for a deficit budget. Governments can justify those deficits with smart spending, and investments in areas such as health, education and infrastructure that have both short-term and long-term benefits.
But eventually you have to return to balanced and even surplus budgets. You can’t saddle future generations with the ramifications of large deficits.
You have to wonder if perhaps big spending resonates with some Canadians more than fiscal prudence.
Prime Minister Justin Trudeau was justifiably panned recently when he said that Canada’s veterans are asking for too much. If he’s going to say that, then the government’s expenses need to be beyond reproach.
While the budget contains some positive news in terms of spending for Canada’s veterans, it’s one area in which the public will tell you a government can do more.
The Liberals will have a hard time justifying their claims that they can’t do more for Canada’s veterans when they have an $18 billion deficit.
It’s also disappointing to see the remnants of the Liberals botched small business tax reforms from last summer. Once Canadians had a long, hard look at the reforms, and the negative impact they would have on entrepreneurs, the Liberals started to backtrack. They should have started over on the reforms, or scrapped them all together, rather than adopt the modifications.
The small business community in Canada is, understandably, concerned about how these changes will impact their bottom line, just like Canadians should be concerned with the deficit in this year’s budget.
