The federal government’s deficit will be higher than previously expected. That admission from federal Finance Minister Bill Morneau who has announced the Trudeau Government’s first budget will be coming down on March 22nd.
He says there will be some positive surprises in store on March 22nd in our budget but he says re-imagining the Canadian economy cannot be achieved in a single year or a single budget.
The projected deficit is now $18.4 billion before 5 billion dollars in new infrastructure spending promised by the Liberals for 2016/2017.
The interim leader of the federal Conservatives Rona Ambrose is accusing the Liberals of blowing a budget surplus of a billion dollars in just 100 days.
She says when it comes time to pay back all this borrowed money, the only way they will be able to do that is through raising taxes.
Ambrose argues now is the time to control government spending even though the Organisation of Economic Co-Operation and Development argues in favour of more public spending to stimulate economies.
