Spending to increase economic capacity is fiscally responsible, Freeland says in post-budget defence
CTV
Defending her latest federal budget, Deputy Prime Minister and Finance Minister Chrystia Freeland said spending that increases economic capacity is fiscally responsible.
Defending her latest federal budget, Deputy Prime Minister and Finance Minister Chrystia Freeland said spending that increases economic capacity is fiscally responsible.
"If you are making investments that increase the economic capacity of the country, that is fiscally responsible," Freeland told reporters on Wednesday after touring an Ottawa child-care centre to tout the 2023 spending plan.
Tuesday's budget unveiled continued deficit spending targeted at Canadians' pocketbooks, public health care, and the clean economy, with Freeland pitching it as her plan to "do big things" while still staring down a potential recession.
But new Liberal spending coupled with a slowing economy has resulted in the 2023-24 federal deficit being nearly $10 billion more than the federal government had projected in the fall.
Freeland's defence of her economic approach came in response to a strong rebuke of the Liberals' freshly-revealed fiscal plans from one of Canada's largest banks.
"Governments did a fantastic job in the early days of the pandemic. The problem is that they are now addicted to high spending and delivering divisive jabs at certain interests. Nothing is being done about productivity and competitiveness pressures that are mounting year by year," wrote Scotiabank vice president and head of capital markets economics Derek Holt, in a report to clients.
"Big spending, big deficits, big debt, high taxes, high inflation and bond market challenges are not the path to prosperity."
