Last week, the Minister of Finance tabled the Liberals’ economic update. It should come as no surprise the government is breaking its last election promise to return to a balanced budget in 2019. In fact, the budget deficit next year will be higher than what was projected just a few months ago in Budget 2018.
According to the update presented on Thursday, this government will never bring forward a balanced budget, and has set out no plan or pathway to return to balance. Instead, this government’s spending remains out of control and it is leaving nothing to spare in the event of an economic downturn.
The Parliamentary Budget Officer reported last month that in just five years, by 2023-24, it will cost $37 billion to service our debt. To put this in perspective, the fall economic statement sends us further into debt so much so that within five years we will spend approximately the same amount on interest payments as we spend on the entire Canada Health Transfer for healthcare.
The government’s fall economic update is adding $17.1 billion in new measures, but it’s still not addressing Canada’s declining competitiveness, a fact outlined by noted economist Dr. Jack Mintz. The government is mortgaging the future of our children because of its inability to effectively manage the finances of our country.