‘NEW APPROACH’: Feds promise to set deficit target — later

The Carney Liberals will “set a responsible target for deficit reduction” with more details to come later, the House of Commons was told Tuesday, according to Blacklock’s Reporter. The pledge followed a Throne Speech in which cabinet reiterated campaign promises to cut waste but fixed no deadline to curb new borrowing.Liberal MP Corey Hogan opened Commons debate on the Throne Speech as MPs sat for the first session of the 45th parliament. Reading from a prepared speech, he said deficit reduction targets will be set and “there is much detail to come afterwards.”Last year’s federal deficit went 55% over target to $61.9 billion. Cabinet has yet to table a budget projecting this year’s shortfall..WATCH: Carney Liberals have no intention of releasing budget this year.The Throne Speech read by King Charles in the Senate’s Red Chamber Tuesday promised a drastic drop in government spending — and confirmed equalization payments to provinces would be upheld.“Day-to-day government spending, the government’s operating budget, has been growing by 9% every year,” he said.“The government will introduce measures to bring it below 2%.”“Transfers to provinces, territories or individuals will be maintained.”“The government will balance its operating budget over the next three years by cutting waste, capping the public service, ending duplication and deploying technology to improve public sector productivity.”.‘$1B A WEEK’: Tory senators say Freeland has 'lost control' of federal spending after $2.13 trillion debt ceiling increase.Hogan speaking in the Commons after the Throne Speech said “our government brings a new approach to this matter.”“The Throne Speech notes the government’s operating budget has been growing by 9% every year. That must change. It will change.”“Our government will bring in measures to reduce the growth of that budget to below 2%.”“Moreover we will set a responsible target for deficit reduction.” He did not elaborate.Parliament has not balanced a budget since 2007. Former Prime Minister Justin Trudeau’s Liberals in the past four years raised the federal debt ceiling by a trillion dollars..'WE COULD SPEND EVEN MORE': Freeland defends spending amid rising deficit concerns .“The increase is a result of the borrowing,” Alexander Bonnyman, director of debt management, said in 2024 testimony at the Commons Finance Committee. The debt ceiling under the Borrowing Authority Act grew from $1.168 trillion in 2021 to $2.13 trillion in 2024.Then-Finance Minister Chrystia Freeland justified the increase as the cost of serving the public.“Our government is at your service,” she told reporters April 30, 2024.“Let’s be honest on what austerity and a shrunken federal government would mean for Canadians. It would mean you would have to fend for yourselves. That is not how we do things here in Canada.”“Here we care for one another. Today we are turning to our younger generation and those who care about them to say, ‘Our government is at your service.’”

‘NEW APPROACH’: Feds promise to set deficit target — later

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