Big spending budget

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The Liberal government tabled it’s first budget this afternoon and as anticipated Finance Minister Bill Morneau delivered a budget that far exceeds their campaign promise of “modest” $10-billion deficits.

The budget deficit is just under the $30-billion mark at $29.4 billion, that’s nearly three times the $10 billion promised during the fall election campaign and the reason we are so deep in the red is because the Liberals have chosen to spend.

The budget, which is called “growing the middle class” centres around helping middle class Canadians. It includes a new tax-free Canada child benefit, an ambitious plan to revamp and restore the country’s infrastructure and billions of dollars in new spending for First Nations.

Here’s how some of it breaks down:
The Liberals will spend $10 billion more over two years for a new Canada Child Benefit. Families with young kids receive a single, tax-free payment each month, geared to income. That replaces the monthly cheque many receive now and eliminates the children’s fitness tax and arts tax credit.

Morneau says the government will spend $11.9-billion over the next 5 years to upgrade public transit, maintain and improve municipal water and sewer systems and build or restore low-income housing.

And $8.4-billion over the next five years to help First Nations, that includes aboriginal programming, education, clean water, housing and healthcare.

Voters were promised a balanced budget in four years but no return to black ink is projected in Morneau’s five-year forecast.

Additional interview with Josh Wingrove from Bloomberg on today’s budget:

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