Spending to increase economic capacity is fiscally responsible, Freeland says in post-budget defence
Spending to increase economic capacity is fiscally responsible, Freeland says in post-budget defence
Defending her latest federal budget, Deputy Prime Minister and Finance Minister Chrystia Freeland said spending that increases economic capacity is fiscally responsible.
"If you are making investments that increase the economic capacity of the country, that is fiscally responsible," Freeland told reporters on Wednesday after touring an Ottawa child-care centre to tout the 2023 spending plan.
Tuesday's budget unveiled continued deficit spending targeted at Canadians' pocketbooks, public health care, and the clean economy, with Freeland pitching it as her plan to "do big things" while still staring down a potential recession.
But new Liberal spending coupled with a slowing economy has resulted in the 2023-24 federal deficit being nearly $10 billion more than the federal government had projected in the fall.
Freeland's defence of her economic approach came in response to a strong rebuke of the Liberals' freshly-revealed fiscal plans from one of Canada's largest banks.
"Governments did a fantastic job in the early days of the pandemic. The problem is that they are now addicted to high spending and delivering divisive jabs at certain interests. Nothing is being done about productivity and competitiveness pressures that are mounting year by year," wrote Scotiabank vice president and head of capital markets economics Derek Holt, in a report to clients.
"Big spending, big deficits, big debt, high taxes, high inflation and bond market challenges are not the path to prosperity."
Holt also cast doubt on the federal Liberals being able to make the kinds of cost savings they've committed to materialize.
"And if the NDP’s ongoing demands for a national pharmacare program resurface… then deficits will explode by even more," he wrote.
Freeland, who stated in presenting her budget that she was ready to "take on" anyone who questioned her approach, pointed to a post-budget briefing from former Bank of Canada governor Stephen Poloz who argued that spending that expands economic capacity may not be inflationary.
"It's relevant to where we are, because he spoke about how our investment in the 2021 budget in early learning and child care has expanded the economic capacity of the country. It has improved women's labour force participation. That has driven economic growth… And his point was that our investments in building the clean economy could very well do the same thing. That's what we believe," Freeland said.
Also responding to criticism that the 2023 budget isn’t as economically prudent as he's framing it, Prime Minister Justin Trudeau said alongside his deputy that the Liberal spending plan "is there to meet Canadians with what they need for right now, and for the coming years."
"Our plan is responsible," Trudeau said. "This is the right budget for the time."
Speaking during debate on the budget motion seeking the House "approve in general the budgetary policy of the government," Conservative Leader Pierre Poilievre quipped about how big Canada's debt is.
"We're talking about a trillion. We have a problem here. There isn't actually a word for trillion in the French language. It doesn't actually exist. This government's debt is so big it violates the Official Languages Act," said Poilievre to an amused caucus seated around him in the House.
According to the budget, the country's overall debt is set to rise to $1.31 trillion over the next five years, and with continued high interest rates, the federal government is projected to pay $43.9 billion next year just servicing that debt.
"We now spend more on interest for debt than we spend on our military, more than we spend on child-care benefits, more than we spend on transfers for education and social services to the provinces, almost as much as we spend on health care," Poilievre said.
The budget is poised to move ahead without the Official Opposition, as the NDP is sticking to the supply-and-confidence agreement that sees the party prop up the Liberals on key votes including budgets.
In a speech to caucus touting the wins the New Democrats "forced" the Liberals into in this budget, NDP Leader Jagmeet Singh said he was "proud" but "not satisfied," indicating they will keep pushing the Liberals do to more, including taking at least the pre-committed-to step of a legislative framework for pharmacare.
"Yesterday's budget shows that when New Democrats have power, we get things done for people. That's what it's shown," Singh said.
Prime Minister Justin Trudeau's efforts to assure Canadians that his government is adequately addressing the threat of foreign interference took a hit on Wednesday, when the majority of MPs in the House of Commons voted for special rapporteur David Johnston to 'step aside,' a call Johnston quickly rejected.
A New Democrat MP is trying to convince his colleagues to change the rules that govern the House of Commons in a series of ways he says would instill 'democratic controls' on the prime minister's 'unfettered' powers.
Monday morning, the Public Service Alliance of Canada announced it had reached a 'tentative' agreement with the federal government for the 120,000 picketing Treasury Board workers who, since April 19, had been engaged in one of the largest strikes in Canadian history. Here's a rundown of the developments from Parliament Hill as they happened.
The House committee studying foreign election interference heard from top 2019 and 2021 Liberal and Conservative campaign directors on Tuesday, with party officials from both camps speaking about the need for politicians to come together to address any "legislative gaps" ahead of the next vote.
In the 2023 federal budget, the government is unveiling continued deficit spending targeted at Canadians' pocketbooks, public health care and the clean economy.
Danielle Smith's win in the Alberta election hands her the most starkly divided province confronting any premier in Canada, writes commentator Don Martin.
Special rapporteur David Johnston didn't recommend public inquiry knowing it was a pathetically insufficient response for a foreign democratic assault of this magnitude, writes Don Martin in an exclusive column for CTVNews.ca.
To frame a few new illustrations on pages tucked inside a passport as proof of a Liberal plot to purge the Canadian historical record seems like a severe stretch, writes Don Martin in an exclusive column for CTVNews.ca.
Public Safety Minister Marco Mendicino is a bright former federal prosecutor, who was destined to be a star in Justin Trudeau's cabinet. But in an opinion column on CTVNews.ca, Don Martin argues Mendicino has taken a stunning fall from grace, stumbling badly on important issues just 18 months into the job.
It's the most peculiar of elections with the frontrunner and her main opponent being the same person, writes columnist Don Martin. 'In the looming Alberta showdown, it's Premier Danielle Smith versus her mouth.'
Canada’s housing market saw the largest improvement in affordability in nearly four years in the first quarter of 2023, according to a report from economists at the National Bank of Canada.
The federal prison service says it will have a second look at its decision to move convicted killer Paul Bernardo to a medium-security facility as political leaders of all stripes react to the news with shock and outrage.
One of the most notable happenings at Apple's event for developers on Monday is likely the iPhone maker's tweak that will keep its autocorrect feature from annoyingly correcting one of the most common expletives to 'ducking.'
Conservative Leader Pierre Poilievre is threatening to use procedural tools to delay passage of the federal budget in the House of Commons if the Liberals don't meet his demands.
While some natural disasters or bouts of extreme weather may require sheltering in place until authorities can restore power to the area, others require residents to evacuate quickly, sometimes in a matter of hours — and if you want to be prepared, you should create a grab-and-go bag.
This season is on track to be the worst fire season Canada has ever seen and the risk of wildfires will remain well above average in most of the country throughout the summer, the federal government warned Monday.
Despite "anecdotal information and allegations," there is no evidence that a prescribed safe supply of opioids is being diverted and causing increased harm and death – specifically among youth, B.C.'s chief coroner said Monday.
The federal prison service says it will have a second look at its decision to move convicted killer Paul Bernardo to a medium-security facility as political leaders of all stripes react to the news with shock and outrage.
Hydro One employees killed in a December 2017 helicopter crash in eastern Ontario were remembered by their families as proud tradespeople with 'lifetimes ahead of them,' as an inquest into their deaths opened Monday.
Police in Australia are investigating the suspicious death of a woman who used to live in Surrey, BC, after her body was found in her apartment on the outskirts of Sydney.
While some natural disasters or bouts of extreme weather may require sheltering in place until authorities can restore power to the area, others require residents to evacuate quickly, sometimes in a matter of hours — and if you want to be prepared, you should create a grab-and-go bag.
Rep. George Santos' lawyer said Monday the indicted New York Republican would risk going to jail to protect the identities of the people who cosigned the US$500,000 bond enabling his pretrial release.
The lawyer for the main suspect in the unsolved 2005 disappearance of American student Natalee Holloway on Monday said his client has changed his mind and plans to challenge his extradition to the United States.
A state school board in Oklahoma voted Monday to approve what would be the first publicly funded religious school in the nation, despite a warning from the state's attorney general that the decision was unconstitutional.
A wolverine was spotted three times last month in the eastern Sierra Nevada, a rare occurrence for an animal that's only been seen one other time in California over the last 100 years.
The monument to Karl Lueger, a statue of an antisemitic politician who is said to have inspired Adolf Hitler, is to be tilted 3.5 degrees to the right.
Candidates to be Guatemala's next president are taking a cue from the leader of neighboring El Salvador and promising their voters they will build mega-prisons and hammer criminal gangs into submission.
Conservative Leader Pierre Poilievre is threatening to use procedural tools to delay passage of the federal budget in the House of Commons if the Liberals don't meet his demands.
The federal prison service says it will have a second look at its decision to move convicted killer Paul Bernardo to a medium-security facility as political leaders of all stripes react to the news with shock and outrage.
The federal government will be providing up to $1.5 million to Pride organizations across the country for increased security measures at parades and other events this year, as advocates call for all political parties to take part.
Women often use hormone therapy to relieve hot flashes and other menopause symptoms -- and new research suggests patches or creams may be safer for their blood pressure than pills.
One of the most notable happenings at Apple's event for developers on Monday is likely the iPhone maker's tweak that will keep its autocorrect feature from annoyingly correcting one of the most common expletives to 'ducking.'
Apple on Monday unveiled a long-rumoured headset that will place its users between the virtual and real world, while also testing the technology trendsetter's ability to popularize new-fangled devices after others failed to capture the public's imagination
Actors represented by the Hollywood union SAG-AFTRA voted Monday evening to authorize a strike if they don't agree on a new contract with major studios, streamers and production companies by June 30.
The bar from the television series "Cheers" sold for $675,000 at auction over the weekend, garnering the highest bid among the nearly 1,000 props, costumes and sets from classic TV shows offered up from a collection amassed by one man over more than three decades.
Microsoft will pay a fine of $20 million to settle Federal Trade Commission charges that it illegally collected and retained the data of children who signed up to use its Xbox video game console.
Canada’s housing market saw the largest improvement in affordability in nearly four years in the first quarter of 2023, according to a report from economists at the National Bank of Canada.
The U.S. imposed sanctions Monday on a group of people linked to Russian intelligence who it said had helped the Kremlin destabilize Moldova's democratically elected, pro-Western government through protests in the Moldovan capital earlier this year.
Canadians are continuing to spend more money on travel as the industry rebounds slowly from pandemic disruptions, according to a recent report — but many are opting for closer destinations, with travel to the U.S. on the rise.
Jonathan Marchessault scored twice and started an early blitz that chased the NHL's hottest postseason goalie, and Adin Hill continued his stellar play as the Vegas Golden Knights seized control of the Stanley Cup Final with a 7-2 victory over the Florida Panthers to take a 2-0 series lead Monday night.
Ontario has committed to paying a third of the cost to save a $5-billion electric vehicle battery plant in Windsor, Ont., premier Doug Ford said Thursday.
The prospect of Fernando Alonso ending a decade-long wait for his 33rd Formula One win in front of tens of thousands of fans at his home race proved too good to be true on Sunday.
Max Verstappen had warned that his Red Bull team was good enough to win every single race of the Formula One season. On Sunday he took one more step toward that ambitious sweep by easing to victory at the Spanish Grand Prix.
