Sunday, September 26, 2021

Opinion: The huge spending commitments of major political parties mean that Canada will not see a balanced budget anytime soon

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The spending promises of all the major political parties in the election are flooding in.

With three weeks left in the campaign, we can expect the proposed spending to reach even more alarming levels as party leaders try to buy citizens’ love for the election. Although all parties care about spending promises, they lack details on how we will pay the bills.

In response to the pandemic, the Canadian government has increased spending levels at a rate never seen outside of wartime. The federal deficit increased from USD 21.77 billion in fiscal year 2019/2020 to an astonishing USD 314 billion in fiscal year 2020/2021.

No party has issued a complete cost plan to balance the budget, so we must derive an explanation from what they said on this issue.

The Liberal Party has hardly stated how they plan to balance the budget. If anything, they have tried very hard to avoid this topic as much as possible. Canadian Prime Minister Justin Trudeau said frankly that he does not consider monetary policy.

However, it is best for those in the Liberal Party’s think tank to start considering these policies as soon as possible, because the current path is unsustainable. Even before considering election promises, it will take 2070 to balance the budget in the current spending process.

The Liberal Party’s budget release did vowed to restore the “small deficit” by 2025, but did not say how. With the full release of the Liberal Party’s election platform on September 1, there are few signs that they will solve the problem of budget balance during the election campaign, let alone pursue balance.

The leader of the Conservative Party (CPC), Erin O’Toole, vowed to balance the budget within a decade by promoting economic growth without cutting spending. Considering that the Canadian economy is contracting in the second quarter of 2021, O’Toole will complete the work for him. To generate the income needed to balance the budget within ten years without cutting expenditures requires incredible economic prosperity.

There are five key points in the CPC release. These points talk about taking “reasonable methods” and investing in targeted stimulus measures to “restore strong economic growth.” This version briefly and vaguely explains how any of these budget goals will be achieved. Nevertheless, we must thank the Conservative Party for acknowledging that the budget must ultimately be balanced.

The New Democracy Party has always been consistent. They never care about budget balance. Leader Jagmeet Singh (Jagmeet Singh) has made substantial spending commitments on everything from expanding public health care to public housing.

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The New Democracy Party really hopes to increase government revenue by imposing a wealth tax, which they believe will “increase revenue while reducing inequality.” They talked about taxing the “super rich” and called on the rich to pay their “fair share.” Although these popular terms are attractive to left-leaning voters, such tax policies rarely increase income as expected when implemented. The New Democracy Party is loyal to their socialist creed, and if nothing else, their honesty is commendable.

The People’s Party (PPC) under Maxime Bernier is the only party that advocates cutting spending to balance the budget. Bernier vowed to cut corporate welfare, CBC, pandemic expenditures and equalization, while removing the federal government from all expenditure areas within the jurisdiction of provinces and cities. This is a bold plan, and it is by far the most realistic plan in terms of balancing the budget.

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If such reductions are implemented, the Canadian public will be surprised, but we may not need to worry. The PPC is making progress, but they are unlikely to form the next government. They are the only political party willing to propose to cut spending to balance the budget, which is commendable.

The Green Party has not yet released a platform and asked people to refer to their 2019 platform. They really don’t talk about the budget at all, and they don’t have any suggestions on how to deal with it. Their party is currently in a state of chaos, and leader Annami Paul has been insisting on environmental issues most of the time.

In this campaign, there is little that can satisfy the fiscal hawks. No one really wants to make the budget a priority, and at the same time they try to promote themselves through positive messages.

No matter which party forms our next government, fiscal reality will return to reality. Many of today’s election promises will prove unsustainable tomorrow. Spending cuts will eventually become a reality, but no leading competitor currently dares to solve this problem. Obviously, the balanced budget will not soon become part of the federal government.

The views expressed in this article are those of the author and do not necessarily reflect the views of The Epoch Times.

Cory Morgan is a columnist and business owner living in Calgary, Alberta.

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This News Originally From – The Epoch Times

Opinion: The huge spending commitments of major political parties mean that Canada will not see a balanced budget anytime soon
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