Liberal platform promises $130B in new measures over 4 years, adding $225B to federal debt

The Liberal Party of Canada has unveiled an ambitious plan that promises to roll out nearly $130 billion in new measures over the next four years. This plan, combined with existing spending, will result in a total of $225 billion being added to the federal debt. The fall economic statement released by the Liberal government projected a deficit of $131.4 billion over the next four years.

Liberal Leader Mark Carney emphasized the significance of this plan, stating that it is in response to the unprecedented crisis facing the country. The party’s election platform includes a one percentage point reduction in the lowest marginal tax rate, costing the treasury approximately $22 billion. Additionally, there are plans to increase defence spending by $18 billion to meet the two per cent NATO spending target.

A key focus of the Liberal platform is the creation of Build Canada Homes (BCH), a standalone agency that will oversee the construction of affordable housing. This initiative is expected to cost $3 billion annually over the next four years. The party also pledges to provide funding to municipalities to reduce development charges and offer tax incentives for repurposing buildings into housing, totaling $22 billion in spending over four years.

The platform outlines four key spending initiatives across the economy, categorized into planks: Unite, Secure, Protect, and Build. These initiatives cover a wide range of areas, including infrastructure funding, defence, health care, and housing. The Liberal government aims to increase government revenues by $51.8 billion over four years, with a focus on tariff revenue and enhanced tax penalties.

Carney has emphasized the importance of separating operational spending from capital investments, aiming to reduce the operating budget deficit to just $220 million by 2028-29. The platform predicts a steady decrease in deficits over the coming years, with the debt-to-GDP ratio dropping to 1.35 per cent by 2028-29.

Overall, the Liberal Party’s plan represents a bold and comprehensive approach to addressing the challenges facing Canada. With a focus on key areas such as housing, defense, and health care, the party aims to position the country for a strong and sustainable future.