Former Parliamentary Budget Officer Kevin Page has weighed in on the budget:
Budget 2022 is surprisingly measured, modest and responsible.
Many budget observers had early expectations and concerns about a big- spending budget financed largely through higher deficits. These expectations were fueled by the recent Liberal-NDP agreement on priorities and policies, as well as pressures to increase defence spending towards NATO targets. In the current environment, more deficit spending focused on boosting consumption (demand) versus investment (supply) would add to inflation.
Business leaders raised concerns that the Liberal Party did not give enough focus to a growth agenda in its 2021 election platform. The economy needs to grow to raise revenues to pay for improved social supports.
To give credit where credit is due, the Liberal government put together a fiscal strategy that largely addresses these concerns. Planned budgetary deficits and the debt-to-GDP ratio are reduced relative to the Fall 2021 Economic and Fiscal Update. New spending is limited. Efforts to address growth and affordability are more focused on the medium-term, with policies aimed at increasing supply (e.g. housing stock) and longer term growth (e.g., innovation, green economy).
Households and businesses looking for significant new short-term relief on recent and expected rising cost pressures will largely be disappointed. Fiscal responsibility is not politically easy.
The fiscal contours of Budget 2022 are measured and in proportion. From above, they look deliberately shaped as a tailor would cut cloth for a suit or dress.
These are trying and uncertain times. Events could render this budget a pipe dream. But, for the moment, Page believes it fits the bill.
Image: Globalnews.ca
10 comments:
When a Canadian billionaire gets caught donating almost $2 million to Trump, I'd say our billionaires are enabling fascism and ought to have less money to do so. Unfortunately, I don't see anything in this budget that significantly raises taxes on the ultra-rich to fund government programs and reduce the scourge of wealth inequality.
Cap
If they can raise taxes on Canadian banks, Cap, they ought to do the same for billionaires.
I was pleased to see increased spending on National Defense. For years, Canada has not done its share as a member of NATO, assuming, I suppose, that because of the demise of the USSR there is no longer anything to worry about. Now that we are entering another phase of the old cold war we see how Russia feels free to attack smaller countries in the absence of armed protection. Our government has responded to that need in this budget (although short of NATO obligations) - something no Canadian government has done for decades. It's a start.
CD
It's a start, CD. And we will have to add to the spending on defense. In some ways, the world hasn't changed much.
It's a welcome albeit rare moment when we can give the Trudeau government credit for getting something right.
I take Page's evaluation seriously, Mound. It sounds like somebody knows what they're doing.
I think its the current Finance Minister. She's a smart cookie, even if there are a lot of the male species that are in denial. I'm impressed --- and she appears to have a fair amount of independence, and we are fortunate to have a PM who doesn't think he is smarter than the average bear.
I learned very early in my working years that when you manage any group of people, no matter how large or small that group is, you pick the smartest people for the job. Smart managers know that smart subordinates make you look "smart" even if they know more about the subject than you do. It works every time!
Shapeshifters getting away with it! 'Right' before our eyes.
I have to commend the Freeland Gov't.
First they get NDP/Singh support locked-in and while we await the great socialist build-back-better that this pact should portend, they announce a budget that seems to delight the 'right'. (aka 'fiscally responsible punditry')
Is that what Mound meant by "It's a welcome albeit rare moment when we can give the Trudeau government credit for getting something .... right?"
;-)
Good leadership is about picking smart people to do the job, Lulymay. It's not about insisting that you're the smartest person in the room.
I'll let Mound answer your question, PoV.
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