Fraser Institute report shows how easily the government could balance the budget – if they actually wanted to.
As we remember, Justin Trudeau promised three years of small deficits (under $10 billion).
Instead, we have endless red ink, with no plan to get back to a balanced budget.
Indeed, under current projections, it will be decades before the government even gets close to balancing the books.
Yet, a new report from the Fraser Institute reveals how easy it would be for the government to balance the books, and how much of a spending spree the Trudeau government has initiated despite their election promises.
According to the report, “A key driver of the larger and persistent federal deficits over the course of the government’s current fiscal plan is rapid growth in program spending. Since coming into office, the Trudeau government increased program spending from $253.9 billion (2014/15) to $304.9 billion (projected for 2017/18). This $51-billion increase in spending equals growth of 20.1% in just three years.”
So, $51 billion in new spending, yet our Veterans are told they’re asking for too much and the government doesn’t have any money. What a fraud.
Notably, the spending increase per year of 6.3% far exceeds the rise in revenue of 3.3% and the combo of inflation plus population growth 2.7%.
“In fact, the recent increase in spending is greater than the 2.2% average growth over the previous decade from 2005/06 to 2014/15 (excluding the 17.1% growth in 2009/10 during the recession).”
That distinction between Trudeau spending levels – which are occurring without an economic crisis – and the levels under Harper – where government spending automatically rises to pay unemployment benefits in a recession – is very important.
Trudeau’s massive deficits are deficits of choice, not necessity.
Balancing the budget would be easy
For all the talk of how the government is strapped for cash, the facts make it clear that balancing the budget would be simple:
“Still, the Trudeau government could make good on its pledge of a balanced budget by the end of its first mandate in 2019/20 through relatively modest spending adjustments: reducing program spending from its 2017/18 level of $304.9 billion to $301.7 billion in 2019/20—a reduction of $3.2 billion or 1.0% over two years.”
Of course, the Trudeau government doesn’t really want to balance the budget. Not only are they going on a massive spending spree – which is heavily skewed towards paying bureaucrats, imposing new taxes, and leaving real issues unsolved – but they are imposing more and more regulations which will slow growth and make the burden of debt even worse.
It’s a dangerous economic agenda that will leave all of us with a massive bill for generations to come.
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