A major bond rating agency wants answers as to how Prime Minister Justin Trudeau will pay for the litany of promises announced in his Throne Speech..And Fitch Ratings warned Canada’s excessive spending is threatening its current credit level..It is the second time in less than a month Fitch has had to warn Trudeau over government spending..“New spending pledges announced by the Government of Canada in its latest speech from the throne will push the general government deficit and debt through FY22 further beyond Fitch’s June estimates and point to a broader expansionist fiscal policy,” said Fitch in a Friday release..“Canada’s (current rating of ‘AA+’/Stable) general government debt to GDP ratio is already significantly higher than the median of its ‘AA’ rated peers, and failure to set clear post-pandemic fiscal anchors and reduce the federal deficit to sustainable levels after the public health crisis could renew negative ratings pressure.”.Calling it “an ambitious plan for unprecedented times,” Trudeau’s Liberal government put forward its agenda for the future during a Speech from the Throne Wednesday..Taxing the rich and a handgun grab were also promised in a speech that barely touched on the West and didn’t mention pipelines at all.. POLL: Many Albertans say they will ignore Christmas COVID lockdown .The 54-minute speech was a huge promise list of spending that will end up costing tens or hundreds of billions of dollars..“Notably, there were no announcements for any offsetting revenue increases, though taxing wealthy Canadians and large digital service companies were noted as possibilities,” said Fitch..Fitch estimates the 2020-2021 federal government deficit will be $380 billion..“Canada has an historical track record of post-recession fiscal adjustments but has not experienced a deficit of this scale in its post-WWII history,” said the Fitch statement..Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.TWITTER: Twitter.com/nobby7694
