February 6, 2025
Given that the best indicator of future performance is past practice – and that the Trudeau government has failed to address these concerns after almost a decade in power – it’s reasonable to conclude a new Liberal government will simply continue these reckless fiscal practices.

Parliamentary budget officer blasts reckless Trudeau government spending

Re-electing the Liberals in the looming federal election would be a financial disaster for federal taxpayers

In what may well be the last independent and objective assessment of Trudeau government spending before it becomes a part of history, parliamentary budget officer Yves Giroux has eviscerated the Liberals’ fall economic statement delivered last month.

The statement received relatively little coverage at the time because it was overshadowed by Chrystia Freeland refusing to deliver it and quitting cabinet, after Prime Minister Justin Trudeau told her he was removing her as finance minister.

Giroux this week released his report to parliament assessing the economic statement, which is standard practice, and a reasonable message to take from it – my words, not the PBO’s – is that re-electing the Liberals in the looming federal election and keeping them in charge of the books would be a financial disaster for federal taxpayers.

Among Giroux’s findings:

The Liberals overshot their predicted deficit of $40.1 billion for the 2023-24 fiscal year – which Freeland had described as a necessary fiscal guard rail to rein in spending when she set it – by 54%, coming in at $61.9 billion.

Government revenues were $1.4 billion lower (0.3%) and program expenses $13.9 billion higher (3.1%) than the Trudeau government estimated for 2023-24.

Giroux found the government’s economic scenarios downplayed potential economic risks facing taxpayers in light of uncertain and volatile global events.

He said the demographic assumptions underpinning the fall economic statement weren’t transparent and were likely inconsistent with current government policies.

For example, Giroux wrote, the “positive impacts of (its) new immigration policies are highlighted … while none of the negative impacts are mentioned.”

He also warned that expenses for contingent liabilities the government faces, largely to resolve potential payments for Indigenous claims, “continue to grow and are an increasing source of fiscal risk.”

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