How will the parties pay for their promises? Why costed platforms are important

As the federal election campaign heats up, parties are gearing up to unveil their fully costed platforms. This is crucial as Canadians are eager to understand how parties plan to implement their spending plans amidst a trade war and economic uncertainty.

Sahir Khan, the executive vice-president of the Institute of Fiscal Studies and Democracy (IFSD) at the University of Ottawa and former assistant parliamentary budget officer, emphasized the importance of these costed platforms. He highlighted the challenging budgetary outlook facing the federal government due to U.S. President Donald Trump’s tariffs and the delay in implementing the Liberals’ capital gains tax hike.

According to Khan, the federal deficit is projected to worsen by $68 billion over the next five years, leading to increased spending on supports for industries and economic slowdown. Therefore, it is crucial for parties to demonstrate their fiscal plans, implementation strategies, and ability to adapt to changing economic conditions.

The Bloc Québécois became the first party to release a fully costed platform, followed by the Green Party with a partially costed platform. The Liberal Party, NDP, and Conservative Party are set to unveil their full costed platforms soon.

Khan expressed surprise at the announcements of tax cuts by the Liberals and Conservatives. Liberal Leader Mark Carney pledged to cut the tax rate of the lowest tax bracket, while Conservative Leader Pierre Poilievre proposed dropping the tax rate on the lowest income tax bracket. These tax cuts will be part of the parties’ broader fiscal plans.

The delay in releasing costed platforms has raised questions, especially as some Canadians have already cast their ballots at advance polls. Khan attributed this delay to the uncertainty created by Trump’s actions, turning costed platforms from offensive to defensive issues for parties.

Despite the late release of costed platforms, Khan emphasized their value for voters as they serve as a roadmap for the future government. It is essential to assess the credibility and feasibility of these plans to avoid a situation where the government fails to deliver on its promises.

In conclusion, as parties prepare to unveil their fully costed platforms, Canadians are eager to see how they plan to navigate economic challenges and implement their spending plans. The upcoming costed platforms will provide voters with valuable insights into the parties’ fiscal strategies and their ability to deliver on their promises.