Canadian Prime Minister Justin Trudeau’s Liberal Party is promising to spend billions of tax dollars on initiatives if re-elected next month. However those commitments would require a deficit of more than C$20 billion over the next four years.
Trudeau, who is waging a tough battle for re-election, released the Liberals’ fully costed platform yesterday. He promised tax money for families, students and the environment. Canadians vote on Oct. 21.
If re-elected, the Liberals said they would spend C$9.3 billion in 2020-21, rising to nearly C$17 billion by year four.
The federal deficit would be $27.4 billion in the first year of a second term. Before declining slightly to C$21 billion in 2023-24.
Tax revenues were estimated at C$5.2 billion in the first year, rising to C$7.2 billion in 2023-24. Thanks partly to the Liberals promise to crack down on corporate tax loopholes. And of course implement a 10% tax on luxury cars, boats.
Canada’s debt-to-GDP ratio would remain around the 30% mark, beginning at 30.9% in 2020-21 before dropping slightly to 30.2% in year four.
Trudeau and his Liberals Believe Budgets Balance Themselves?
In other words, Trudeau’s campaign platform hikes his combined projected deficits over the next four years by almost $37 billion, compared to what he said in March.
Finally, in his 2015 campaign platform, Trudeau said Canada’s debt-to-GDP ratio, an important indicator of the government’s economic health, would be 27% this year. His March budget put it at 30.7%. His platform released Sunday says it will still be 30.2%, four years from now.
Trudeau’s campaign platform can accurately be described as the work of a prime minister who actually believes budgets balance themselves.