Ability to fulfill campaign promises and maintain debt-to-GDP ratio under question.
The Parliamentary Budget Officer is raising doubts about whether the Liberals can realistically keep their campaign promises and keep the debt-to-GDP ratio stable, following a fiscal update that revealed much higher than expected budget deficits.
As noted by the CP, “The parliamentary budget officer says in a new report that the Liberals won’t see a decline in debt-to-GDP ratio this year unless there are spending cuts, greater revenues or faster economic growth before the end of March 2020, when the fiscal year ends. The budget office says the situation could become more acute if the economy slows.”
Following reports that the deficit will be higher than $20 billion a year for the next four years, and will hit $27 billion in 2020-2021, the PBO says “Deficits in this range permit limited fiscal flexibility in the event of an economic downturn to maintain a declining debt-to-GDP (ratio), and limited fiscal room to implement additional electoral commitments in the near term.”
There’s no doubt that the Liberals knew all of this when they made their campaign pledges, and simply lied to the Canadian People about the budget deficit and their (non-existent) plan to balance the budget over time.
However, no amount of well-crafted political lies can hide the reality facing Canada: Our economy is weakening, our government is incompetent, and the road ahead is looking grim.
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