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Budget leaves behind an extraordinary debt

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When governments propose a budget during an election year, it’s inevitable the document will be larded with goodies for the electorate, along with financial trinkets to convince voters their world will be more comfortable with the incumbents, and further, that it would be unwise, indeed foolhardy, to seek change.

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Such is the case with the federal Liberals’ budget, introduced last week. And if ever there was a budget that grovels in seeking the support of Canadians, this is it.

The budget has something for almost everyone. Indeed, Prime Minister Justin Trudeau is promising to spend an additional $23 billion on more than 100 programs over the next six years. The Liberals have tried to check off all of the demographic boxes with their budget – millenials, workers, students, farmers, indigenous Canadians, seniors and families – in the hope they will be remembered on Election Day.

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Seemingly no one has been overlooked, except for one important group – our children and grandchildren, and others who will be compelled in the future to confront the prospect of living in a Canada where government debt is so high that its shadow darkens every private initiative and threatens the stability of necessary government programs.

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Four years ago, Trudeau promised that in the 2019-2020 fiscal year his government would have a $1-billion surplus following several years of deficits. He was right about the deficits but wrong about the surplus. And the new budget forecasts a $19.8-billion deficit for 2019-2020, an extraordinary over-reach even by his standard.

But this shouldn’t come as a surprise. Earlier this the year the government had the good fortune to realize additional revenue in the billions of dollars, due mostly from higher than expected income tax revenues. The Liberals could have done the responsible thing and pay down debt while maintaining vital government services. But the March 19 budget clearly shows the windfall will be spent, and that many more billions will be borrowed.

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Again, it’s generally expected that governments will spend more during an election year, but the Liberals have shown little evidence of restraint since being elected in 2015. Trudeau campaigned on the promise of a budget deficit. Even the New Democrats, under the leadership of Tom Mulcair, offered to be more careful with the public purse and were promising a balanced budget.

This is a government that spends every dollar it takes in, and then borrows even more to keep going. The full cost of the promises it makes today will not be paid by those who benefit, but by those who will have none of the benefit and all of the cost.

– Peter Epp

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