Ottawa is maintaining its propensity to borrow to finance program initiatives.
This has long been a hallmark of federal financial management – sometimes even resulting in warnings from international agencies, such as the OECD, which red-flagged the magnitude of our debt.
The March 28 budget will do nothing to change the government’s course.
Spending continues to rise and so does borrowing at a time when interest rate hikes are getting more headlines than an expanded GST rebate. In short, the cost of governing this country is going up while revenues fall behind in an economy now projected to flatline at best or go into recession at the other end of the spectrum.
It is a combination that means lower government tax revenues coupled with higher expenses – everything needed to earn Canada another warning from global watchdogs who would rather spend their time helping developing nations rather than babysit wealthy ones lacking the fiscal discipline needed to manage their affairs.
