For the past twenty years, the federal government has made prudent fiscal decisions. But now the Trudeau government’s first budget will overspend by 30-billion dollars, and add 118-billion to Canada’s debt over the next six years.
The campaign promise to limit the deficit to 10-billion and balance the budget in four years has been broken, and the commitment to spend heavily on infrastructure isn’t happening. The new government is putting only 2.7-billion into infrastructure this year, well below the promised 5-billion.
Instead, they’re borrowing money to fund social entitlements, with spending increases every year. In doing so, government is abandoning the fiscal mooring that served Canada well and digging Canada into a structural deficit that will be difficult to close.