I was shocked at the immensity of the deficit that Minister Morneau has brought forward in the new federal budget. And this, during reasonably good economic times! Imagine if it was in recessionary times? These are some of the comments I've read and heard concerning the new Liberal Budget, twenty-four hours later:
1) "During last year's election, Prime Minister Trudeau said he would 'grow the economy from the heart outwards'. It's now clear that he meant he would do it by turning our pockets inside out."
2) "This budget hikes the deficit by $29.4 billion this year, with the indication that it will exceed $100 billion over five years. It also deep-sixes Trudeau's promise to have a balanced budget by the end of his first mandate."
3) "Trudeau is embarking on a disastrous fiscal policy of attempting to spend Canada rich."
4) "This style of budgeting is not what Canadians want. It's not what they voted for."
5) "No fiscal targets. No plan for fiscal consolidation," said Kevin Page, former Parliamentary Budget Officer, shaking his head.
For Morneau to say that, because interest rates are low, now is a good time to be borrowing lots of money, doesn't make sense. What will happen when interest rates rise, as they are sure to do? How are we to pay for that increased debt? After winning the election, Trudeau famously said, "Canada's back!" After posting this budget, he could have added, "...back into the red."