If you want to know the straight goods on Trudeau government spending, it’s always wise to look at its assessment by parliamentary budget officer Yves Giroux, a financial watchdog for parliamentarians and taxpayers.
In his recent assessment of Finance Minister Chrystia Freeland’s November mini-budget, and in testimony before a Commons committee Monday, Giroux said:
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The government failed to practice fiscal restraint by already earmarking $52.2 billion in new spending out of $81.2 billion in new fiscal room it acquired due to inflation and economic recovery from the pandemic.
Giroux said committing that amount to new spending when the economic outlook remains uncertain is “not keeping one’s powder dry.”
That disputed Freeland’s claim when she unveiled the mini-budget that the government is in good financial shape because “we are keeping our powder try today.”
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Giroux said of the $52.2 billion in new spending, $14.2 billion or 27%, came without specific details on how the money will be spent, adding “this lack of transparency presents challengers for parliamentarians and the public in scrutinizing the government’s spending plans.”
Giroux said a $4-billion increase to the Canada Workers Benefit program to help low-income earners cope with higher inflation and interest rates will mainly go to people ineligible for the money.
“The substantial cost of this … measure is largely due to the government’s policy decision not to recoup … advance payments when recipients’ incomes rise and they become ineligible for benefits, or eligible for lower benefits,” Giroux said.
“Not requiring repayment of federal benefits for ineligible individuals is a pronounced departure from the existing federal tax and transfer system.”
Giroux said a claim the government achieved $3.8 billion in savings, surpassing a $3-billion target, was actually the result of “lower than anticipated spending on certain COVID-19 support measures in the previous fiscal year” and “inconsistent with the intention and timing … announced in” the 2022 budget.
Giroux said he’s concerned the government has simply increased funding in problem areas such as the issuance of passports and immigration applications, rather than making the services more efficient.
Finally, he noted the government is still a month behind meeting the International Monetary Fund’s standard for publishing annual financial statements within six months of the end of the fiscal year.
