Tom Flanagan: Indigenous Programs and Payouts Help Drive Federal Deficits
Commentary
When Finance Minister Chrystia Freeland presented the federal budget, the most obvious fact was the size of the deficit. It came in at $40.1 billion, after having been forecast at “only” $30.6 billion in the fall economic update less than six months ago. What caused the deficit to shoot up $9.5 billion in such a short period of time?
Some analysts pointed to supply-and-confidence deal between the Liberals and the NDP, which has led to increases for health and dental care. Others pointed to lower-than-expected tax revenues caused by an unexpected slowdown in the economy. Both lines of analysis are correct, but many things can be true at the same time in the complex world of public finance….