The Globe and Mail reports in its Wednesday, Oct. 8, edition that last year, the Trudeau government -- never known for its fiscal probity --projected a $48-billion deficit and took heat for it. The Globe's guest columnists Eugene Lang and Brigid Waddingham write that today, the Carney government seems poised to nearly double that figure, yet this is almost a non-issue. Prime Minister Mark Carney's economic chops and business-brand strength are letting him off a hook that would hang anyone else.
A BMO Economics report in July said "it wouldn't be surprising to see the federal deficit jump toward $80-billion, or about 2.5 per cent of GDP." The C.D. Howe Institute expects a $92-billion fiscal shortfall, the largest in a decade and a half (outside the pandemic years). The Parliamentary Budget Officer has labelled federal finances unsustainable and foresees a $68-billion deficit.
The economy is slowing, with growth projected just above 1 per cent, yet the PM has not garnered any flak. Why the PM is getting off easy remains a mystery for the guest columnists. Maybe it is because the PM has good credentials. They call the PM the Rolex of sound finance, the RollsRoyce of economic competence and the Prada of prudence.
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