Gérard Deltell, Conservative Finance Critic, slams Trudeau Liberal government over a “buried” government report on looming fiscal crisis and federal debt projections of $1.5 Trillion by 2045.
On January 5, 2017, Deltell issued the following statement:
In 2015, Justin Trudeau ran on a platform pledging transparency, openness, and with the promise to return to a fiscal surplus by 2019.
Last month, the Liberal Government not only quietly released a document updating Canadians on their long-term economic and fiscal projections, but also went back on their own promises by detailing that the budget is not forecasted to return to balance until 2055.
The Prime Minister is quickly learning that the budget will not balance itself, and his lesson is coming at a massive cost to Canadian families.
The Conservative Government left the Liberals with a balanced budget. Now after just more than a year of Justin Trudeau, Canadians are looking at deficits as far as the eye can see, and federal debt projections of $1.5 Trillion by 2045.
During my time as Finance Critic, I have, on the record, asked the Finance Minister 14 times to give Canadians a date that he plans to have the deficit back at 0. He refused to answer at every opportunity, and now we know why.
One way or another, Canadians are going to foot the bill for Liberal mismanagement and I have no trust that there is a credible path back to a balanced Liberal budget. When the Finance Minister introduces his 2017 budget, Conservatives will be looking for a clear plan, with a firm deadline, for Liberals to stop spending more than they take in.
Conservatives have been hard at work, doing what Canadians expect and deserve of the Official Opposition. We will continue to hold Justin Trudeau accountable for raising taxes, introducing policies that have stalled job growth and his questionable ethics.
In its “Update of Long-Term Economic and Fiscal Projections”, the Department of Finance Canada presented the following projections:
- Real GDP growth is assumed to depend on labour productivity growth and labour input growth, which is assumed to grow at about its historical average over the 2022–2055 period.
- The forecast for the unemployment rate over the 2016–2021 period projects a gradual decline to 6.2 per cent by 2021, near its level prior to the 2008–2009 recession. It is assumed to remain at this level over the long term.
- Over the medium term (2016–2021), growth in labour supply is projected to continue to contribute significantly to overall GDP growth, albeit somewhat less than over the last four decades.
- After 2021, the contribution of labour force participation is projected to decline slightly each year (-0.2 percentage points annually) given the increasing rate of retirement among the baby boom generation, dampening labour supply growth (Table 2).
- Beyond 2021, the unemployment rate is assumed to stabilize and average hours worked are projected to continue their trend decline.
- Combined, these factors suggest that the contribution of labour supply to real GDP growth will decline significantly to an average of just 0.5 percentage points per year over the 2022–2055 period, from the 1.6 percentage points over the 1970–2015 period.
- Given assumed trend productivity growth of 1.2 per cent per year, the same as over the 1970–2015 period, overall growth in real GDP would average 1.7 per cent per year over 2022–2055.
- The federal debt is assumed to grow from $746.4 billion in 2021-22 to $1.183.8 trillion in 2035-36 to $1.554.1 trillion in 2050-51.