Carney said during the Liberal leadership race that the Canadian economy was in trouble long before Trump became president — specifically criticizing the Trudeau government for allowing immigration to get out of control and for increasing the operating spending of the federal government by 9% annually.
Carney has promised to decrease the hike in the operating expenditures of the federal government — meaning the cost of such things as paying the public service — to less than 2% annually, and to balance that budget within three years.
But to achieve this, he’s changing the way the government reports on its annual deficits and debt in the Liberal budget
to be delivered on Nov. 4?
With a sleight of hand, Finance Minister François-Philippe Champagne intends to wave away all the bad news
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Going forward, the federal government will distinguish its operating expenses from
capital spending on things such as “nation building” projects, which Carney describes as investments that create assets rather than operating costs.
But whatever he calls it, it’s going to be financed by bigger annual deficits and higher public debt that all has to be paid back, eventually, with interest.
Taxpayers can only hope budget won’t make current financial mess even worse.
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Acting Parliamentary Budget Officer Jason Jacques has described the anticipated future spending and debt levels of the Carney government in its upcoming budget as “shocking,” “alarming,” “stupefying” and “unsustainable.”
He warned the federal budget on Nov. 4 is expected to abandon previous fiscal anchors the Liberals set for themselves, including that annual deficits would be no higher than 1% of Canada’s GDP and that the debt-to-GDP ratio would decrease over time, etc…