A note this week: In order to bring my constituents the most up-to-date information, I waited an extra day to focus this week’s report on the federal budget.
Today was budget day in Parliament, but in reality, today’s announcement was pure spending, with an absolutely massive $765 billion in projected new federal and Crown corporation debt over the next five years.
It is hard to fathom that just 18 months ago, in Prime Minister Carney’s Speech from the Throne, he stated that “day-to-day government spending” under the previous Liberal government grew by 9% each year. Prime Minister Carney promised Canadians that he would introduce measures that would reduce this spending growth to under 2%.
Today we witnessed an incredible growth in spending, with no credible fiscal anchor to restrain that spending and no path back to a balanced budget.
Why does this matter? It matters because interest on the debt is rising rapidly. In fact, by 2030-31, the Government of Canada will be spending almost $18 billion more on debt interest than it transfers to the provinces and territories through the Canada Health Transfer.
The budget also includes other measures, such as revised immigration numbers. Back in September, Prime Minister Carney claimed that Canada’s immigration system was “back under control” after the Liberals themselves had previously admitted it had gotten out of control under their watch.
In today’s budget, the Liberals set annual targets of 380,000 permanent resident admissions and 370,000 new temporary resident arrivals in each of 2027, 2028 and 2029. While below the recent record highs, these numbers remain historically elevated.
There is considerably more to highlight in this budget, and certainly more than can be covered in this space this week. In next week’s report, I will break down some of the more specific budget items that will be of interest locally.
There are also some non-spending measures that may be helpful, particularly further action on fees charged by wireless companies, as well as changes to the CRA that, if implemented properly, allow for income verification that would reduce mortgage fraud that I have spoken out about in the past.
At this early stage, there is still much more to process and analyze. My question this week is for those who are following the reporting on this budget: Is there anything in particular that you have come across that you are supportive of?
As always, you are welcome to share your thoughts on my Facebook page, by email at Dan.Albas@parl.gc.ca, or by calling toll-free at 1-800-665-8711.
