New report shows Trudeau lied about the budget which could cost a major recession

in Canada by

The Trudeau government lied about the 2018/2019 budget, he promised they would be balanced but that’s simply not the case.

The budget is so bad it could cost the Canadian economy to go into a major recession.

Via Fraser Institute:

The latest federal budget showed that public finances are in poor shape and Ottawa is ill-prepared for a possible economic recession. But a recent Parliamentary Budget Office report suggests the situation may be worse than the government claims. According to the PBO, the government’s operating deficits are likely to be higher than the government expects.

For this year (2018/19), the PBO projects a deficit of $22.1 billion—$4 billion more than the $18.1 billion deficit projected by the government. Next year (2019/20), which is notable because it’s the year Prime Minister Justin Trudeau promised to balance the budget during the 2015 election, the PBO projects a $21.4 billion deficit for 2019/20 compared to a $17.5 billion deficit projected by the government.

Overall, the PBO projects a cumulative deficit of $85.6 billion over the next five years (2018/19-2022/23)—$7 billion more than the cumulative deficit projected by the government ($78.6 billion).

Critically, however, the PBO’s revised deficit estimates assume the Canadian economy continues to grow. This may not happen. There’s a very real possibility of an economic recession in the coming years given the last one was nearly a decade ago. A recession would result in even larger deficits by causing revenues to fall and certain types of spending (such as employment insurance) to automatically increase.

More here.