Has the Trudeau government lost control of the debt?

Has the Trudeau government lost control of the debt?

Finance Minister Chrystia Freeland will table her budget soon, probably the week of March 18, the only week in March when MPs sit in Ottawa. Should the federal government cut its spending, as economists at the CD Howe Institute suggest, or is the Canadian budget situation entirely healthy and viable, as Desjardins' economists insist?

At a time when the Conservatives, often leading in the polls, are calling for bigger budgets, we might wonder if the Trudeau government is strategically unwilling to begin a fiscal overhaul after eight years of deficits, debt and big investments in expensive projects. harsh

At the same time, is there a real problem with Canada's public finances? Do we really need to worry? Will the Trudeau government's budget deficit actually translate into significant social progress?

According to Statistics Canada, the Gini coefficient fell by 7% from 2014 to 2021, which means levels of inequality have decreased, and state policies have had to do something with it, particularly the creation of the Canada Child Benefit, which has helped reduce it. The household poverty rate has fallen from 12.9% in 2016 to 7.4% in 2021, again according to Statistics Canada data.

Budget cuts?

Now, many economists are concerned about the financial stability of the Canadian government. Since the Liberals came to power, the fiscal deficit has been calculated at over 550 billion. Net debt has grown from about $700 billion in 2015 to $1.3 trillion today. Central government debt increased from 31% to 42% of GDP.

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