The more I look at the recent Canadian federal budget, the more disenchanted I become. It was actually amusing to see all my compatriot Bay Street economists give this document a free pass. It deserves a failing grade just based on the numbers, the actual versus what was pledged by the Liberal government in the past.
The 2027 fiscal year projects were first published in April 2022. The worst of COVID-19 was behind and the economy had reopened. The fiscal spigots had already been opened in support of the economy in 2020 and 2021.
Back then, the fiscal deficit projection for the current 2027 fiscal year was $8.4 billion. What did we find out last week? The red ink is going to be $62.3 billion. That isn’t offensive to anyone?
