Breaking down the Liberal fiscal framework

Locutus

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Jun 18, 2007
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David Akin breaks down Justin Trudeau's election promise to add $26.1 billion to the national debt.

The Liberals presented their fiscal plan Saturday, outlining where a Justin Trudeau government would raise money, spend money and what kind of budget balances would be left over. Here’s the highlights:

After One Year of Trudeau (2016-2017)

New Revenue compared to Conservative plan in Budget 2015:
$23.94 billion

    • Eliminate existing child benefit plans:: $17.96 Billion
    • Increase income on wealthiest One Per Cent: $2.8 billion
    • Close tax loopholes and chop government spending: $500 million
    • Keep EI premiums higher than Conservatives had proposed: $524 million
    • Cancel income splitting for parents: $2 billion
    • Cancel increased ceiling on tax-free savings accounts: $160 million
New spending, tax cuts and benefits
$34.43 billion

Includes:


  • New Canada Child Benefit plan: $21.73 billion
  • Middle class tax cut: $2.87 billion
  • Boost to GIS for single seniors: $720 million
  • Increase infrastructure spend: $5 billion
  • Enchanced EI system: $524 million
  • Jobs and Training: $905 million
  • Parks and clean-tech support: $415 million
  • Arts and culture: $185 million
  • Aboriginal education and infrastructure: $250 million
  • Veterans programs and benefits: $325 million
  • Immigration: $133 million
  • Measures not yet announced: $1.17 billlion
Budget Balance:
$9.89 billion deficit
Federal debt-to-GDP ratio:
30% vs Conservative plan in Budget 2015 of 29.3%


After Four Years of Trudeau (2016-2020)

New Revenue compared to Conservative plan in Budget 2015:
$108.5 billion


  • Eliminating existing child benefit plans: $73.6 Billion
  • Increase income on wealthiest One Per Cent: $11.5 billion
  • Close tax loopholes and chop government spending: $6.5 billion
  • Keep EI premiums higher than Conservatives had proposed: $7 billion
  • Cancel income splitting for parents: $8.3 billion
  • Cancel increased ceiling on tax-free savings accounts: $1 billion
  • Eliminate fossil fuel subsidies: $625 million.
New spending, tax cuts and benefits:
$146.5-billion
Includes:


  • New Canada Child Benefit plan: $89.5 billion
  • Middle class tax cut: $11.8 billion
  • Boost to GIS for single seniors: $3.1 billion
  • Increase infrastructure spending: $17 billion
  • Enchanced EI system: $6.9 billion
  • Jobs and Training: $3.5 billion
  • Parks and clean-tech support: $1.7 billion
  • Arts and culture: $1.3 billion
  • Aboriginal education and infrastructure: $1.6 billion
  • Veterans programs and benefits: $1.26 billion
  • Immigration: $357 million
  • Measures not yet announced: $7.5 billion
Budget balance:
$26.1 billion added to national debt
Federal debt-to-GDP ratio:
27% vs Conservative plan in Budget 2015 of 25.5%
Source: Liberal Party of Canada / Department of Finance



protip: the budget does not balance itself.