$20 billion deficit projected next year

Ben Ronald / March 19, 2019

The 2019 budget document is 460 pages long and entitled “Investing in the Middle Class”

The Trudeau government tabled its final budget before this fall’s general election. The budget features $22.8 billion in new spending over five years.

The budget includes measures that focus on millennials, indigenous people and seniors targeted by spending in 2019 budget.

Some of the big ticket items include government funding to help first-time home buyers, lower interest-rates on student loans, and $8.1 billion towards indigenous health care. Seniors will also see changes to the Guaranteed Income Supplement.

“Many Canadians still feel that they are working harder than ever, but not getting any further ahead. They feel uncertain about the future for different reasons” – Bill Morneau, Minister of Finance

Finance Minister Bill Morneau says that his budget projects a $20 billion deficit next year, followed by $15 billion in 2022-23.

This goes against a 2015 promise the Liberals made. Trudeau indicated during the election campaign that the Liberals would run “modest” deficits in the first three years of their government, before returning to a balanced budget in 2019.

The budget announcement comes in the midst of the SNC-Lavalin controversy which, according to some national polls, has put a dent in Liberal support.

Morneau’s actual speech in the House of Commons was delayed due to heckling by opposition parties.

The opposition Conservatives and NDP have objected to the Liberals decision to limit former Attorney General Judy Wilson Rayboulds testimony regarding the SNC-Lavalin affair.

Despite the projected deficits, the Liberals and some economists points to Canada’s relatively strong debt-to-GDP ratio.

Read the entire 2019 budget here:

Budget 2019 En (Text)