Trudeau breaks from pack regarding balanced budget

In Toronto Tuesday, the Liberals called on deficit-slayer Paul Martin to help assert the party’s economic credentials. But the sliding economy should be the first priority, Trudeau said, with a return to surplus later. He has cited the Harper government’s record of seven consecutive budget deficits as nothing to brag about.

Thestar.com
Aug. 25, 2015

Liberal Leader Justin Trudeau will not commit to balancing Canada’s budget immediately, saying it would be wrong to claw back billions in government spending at a time when economic growth is sluggish.

The pledge puts him at odds with his opponents in Canada’s narrow three-way election race. New Democratic Leader Tom Mulcair pledges to balance next year’s budget if his party is elected and Prime Minister Stephen Harper warns of “permanent deficits” under each of his challengers.

With Canada grappling with the rout in global markets, Trudeau said this year’s budget is already in deficit - contrary to Harper’s claims. Trudeau would not say how quickly he would return to surplus if elected in the Oct. 19 vote, arguing now is not the time to remove government money from the economy.

“We’re focused on growing the economy and getting back into balance,” Trudeau said at a campaign stop in Toronto. “Like I say, how long that will take will depend very much on Mr. Harper and the mess he has left behind, along with the global situation.”

The Liberal leader was joined by key figures of his economic team and former Prime Minister Paul Martin.

Canada’s dollar plunged to the lowest in a decade Monday as slowing global growth sparked a worldwide market sell-off. Falling oil prices have also prompted investors to raise bets the Bank of Canada will reduce interest rates a third time this year in its Sept. 9 rate decision.

“The fact is now is not the time to remove millions and billions of dollars from the Canadian economy,” Trudeau said. “Now is the time to grow the economy, to invest in the middle class and those working hard to join it.”

Harper trigged the election, the country’s longest since 1872, at the beginning of this month and has been eager to campaign on the economy.

Speaking Tuesday near Hamilton, Ontario, Mulcair - who polls have shown to be regularly out-pacing Trudeau as Harper’s top rival - distanced himself from the Liberal leader by committing to balancing the 2016-2017 budget.

“Our first budget will be a balanced budget,” Mulcair said, adding “governing is about priorities.”
Speaking in Quebec City, Harper repeated a theme of his campaign for a fourth term, warning that changing governments would be risky at a time of global instability.

“This would be the worst time to suddenly fly off on a completely different plan, one based on extraordinarily high levels of spending, to be financed by increased taxes and permanent deficits, and that is what the other guys are planning,” Harper said. “That would be demonstrably bad for Canadians’ long-term prospects.”

Trudeau has sought to distinguish himself from the incumbent Conservative leader by attacking Harper’s record of consecutive budget deficits. There were seven before this year’s budget, which projected a small surplus. However the country’s budget watchdog now says it has fallen into deficit.

The global economic uncertainty and the market meltdown over the last few days have sharpened the public’s focus on the economy.

Martin took a direct shot at the Conservatives on Tuesday, saying their hands-off approach to the economy has been disastrous.

“There is a reason, you know, why we have a federal government in this country,” he said.

“There is a reason we have a central government in this country. The central government’s role is not be an idle observer of the passing scene, but to do something about it when there are problems.”