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.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
'My family doctor just fired me': Ontario patients frustrated with de-rostering
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
'He's in our hearts': Family and friends still seek answers one year after Nathan Wise’s disappearance
It’s been a year since Nathan Wise went missing and his family is no closer to finding out what happened to him.
Canada Post cracks down on Nunavut loophole to get free Amazon Prime shipping
Amazon's paid subscription service provides free delivery for online shopping across Canada except for remote locations, the company said in an email. While customers in Iqaluit qualify for the offer, all other communities in Nunavut are excluded.
Mother's Day movies that pull at ALL the heartstrings
This Mother's Day Weekend, take a look at some of the most emotional movies inspired by moms.
Suspect sought after fatal slashing in downtown Toronto
Police are searching for a suspect in a homicide investigation after a man was slashed in downtown Toronto on Sunday.
Edibles, armchairs and adapters: Here are the recalls for this week
Health Canada announced various product recalls this week, including electric adapters, armchairs, cannabis edibles and vehicle components.
Putin replaces Russian defence minister in rare cabinet shakeup
Russia’s President Vladimir Putin began a Cabinet shakeup on Sunday, proposing the replacement of Sergei Shoigu as defence minister as he begins his fifth term in office.
WATCH Dashcam video shows terrifying near-miss on two-lane northern Ontario highway
There were some scary moments for several people on a northern Ontario highway caught on video Thursday after a chain reaction following a truck fire.
Local Spotlight
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Wilfrid Laurier football player drafted despite only playing 27 games in his entire life
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
Federal government bans watercraft from Manitoba lake popular with tourists
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
Toronto-area dessert shop featured by Keith Lee forced to move after zoning complaint
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
'Oh Crap!' New exhibit at Canada Science and Technology Museum explores human waste
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'
Regina police hope new biometric monitoring system will save lives in detention facility
The Regina Police Service says it is the first in Saskatchewan and possibly Canada to implement new technology in its detention facility that will offer real-time monitoring of detainees’ vital health metrics.
Her SUV was stolen in Montreal. A Good Samaritan on Facebook helped her get it back
Just as she had feared, a restaurant owner from eastern Quebec who visited Montreal had her SUV stolen, but says it was all thanks to the kindness of strangers on the internet — not the police — that she got it back.
Vancouver and Edmonton's mayors bet on who will win Round 2 of the playoffs. Here's what's at stake
The stakes have been set for a bet between Vancouver and Edmonton's mayors on who will win Round 2 of the Stanley Cup playoffs.
'No other life taken': Mother leads ATV helmet drive to honour daughter's legacy
A grieving mother is hosting a helmet drive in the hopes of protecting children on Manitoba First Nations from a similar tragedy that killed her daughter.