First Nations leaders blast feds for attributing deficit overrun to Indigenous legal claims
First Nations leaders are expressing outrage and demanding an apology from the federal government after it was revealed that the latest deficit overrun was attributed to Indigenous legal claims against the Crown. The minority Liberals faced backlash as they presented their annual fall economic statement in the House of Commons, following the sudden resignation of former finance minister and deputy prime minister Chrystia Freeland.
Freeland had promised to keep the federal deficit at or below $40 billion by 2023-24, but the statement unveiled a deficit of $61.9 billion. The Finance Department pointed to a “significant one-time” expense of $16.4 billion for settling Indigenous legal claims as the main reason for the deficit overshoot. Linda Debassige, the grand council chief of the Anishinabek Nation, condemned this explanation as “utterly ridiculous” and accused the government of villainizing and scapegoating First Nations.
Debassige emphasized that these settlements were money owed from resources taken from Indigenous lands shared with settlers, not an additional burden on the government. She called upon the government to apologize for its statement and recognize the importance of the relationship with First Nations. The Assembly of First Nations and the Assembly of Manitoba Chiefs also criticized the government’s handling of the deficit explanation, calling for sustained investments in reconciliation and economic growth.
The controversy surrounding the deficit overrun has exacerbated frustration among First Nations, whose critical needs remain unaddressed amidst political instability in the capital. While the economic statement highlighted increased spending for First Nations over the past decade, much of it is tied to legal claims won through the courts. The Finance Department acknowledged the need to improve how it anticipates and accounts for claims moving forward.
The issue at hand revolves around contingent liabilities, which are recorded when government lawyers anticipate losing in court and expect future payments. These liabilities have grown significantly under Prime Minister Justin Trudeau, reaching $76 billion in 2023 from $11 billion in 2015. The Finance Department attributed the decrease in contingent liabilities to settlement agreements being reached, indicating ongoing negotiations and active litigation.
Overall, the federal government’s handling of Indigenous legal claims and their impact on the deficit has sparked outrage and calls for accountability from First Nations leaders. The need for reconciliation, sustained investments, and improved fiscal management moving forward remains a priority in addressing the longstanding issues faced by Indigenous communities.
