Looming Fiscal Crisis
January 12, 2017
Just over a year ago, Canada’s economy was the envy of the world, as our Conservative government proudly balanced the federal budget. All that hard work was quickly undone by the new Liberal Prime Minister.
The Federal Finance department during the Christmas break released a new report stating we will now have annual budget deficits for the next quarter century, a predicted culminated federal debt of $1 trillion in the next 15 years and we will likely see a tripling of current debt levels to $1.5 trillion by 2050. If Prime Minister Justin Trudeau stays on course, Canada may not see another balanced budget until the year 2055. In fact, analysts are predicting bigger deficits could lead to the collapse of our economy.
This week we learned from the Parliamentary Budget Office that the stimulus measures from infrastructure spending will likely be delayed. The government committed $186 billion over 11 years in last fall’s fiscal update. The economic impact of this is now projected for later 2017 and into 2018.
How can Justin Trudeau pull out of this self-inflicted economic tailspin? He can stop his reckless spending or raise taxes. Unfortunately, we’ve already seen which choice he prefers.
Future generations will be on the hook and his spending is putting programs that provide financial security to those who are entering their golden years at risk.
Justin Trudeau’s out-of-control spending and continuing tax hikes are sending Canada on a dangerous path. What happened to the Liberal promise to balance the budget before the next election?