CTF lays out plan to balance the federal budget in 2023-24
OTTAWA, ON: The Canadian Taxpayers Federation outlined its plan to balance the federal budget in 2023-24, which was presented to the Standing Committee on Finance.
“The federal government could balance its budget in 2023 by returning to pre-pandemic spending, which was already at all-time highs,” said Franco Terrazzano, Federal Director of the CTF. “A balanced budget means less debt for Canadian kids and grandkids to pay back, less money wasted on interest charges and fewer tax hikes.”
Data from the Parliamentary Budget Officer shows that on Budget 2021’s trajectory, the federal government wouldn’t balance the budget until 2070. As a result, debt interest costs would total $3.8 trillion by 2070.
The CTF’s pre-budget submission recommends balancing the budget in 2023-24 by bringing program spending to pre-pandemic levels in 2018-19, adjusted upward for inflation and population growth. The federal government was spending all-time highs before the pandemic, in 2018-19.
CTF’s proposed balanced budget plan
|
2022 |
2023 |
2024 |
2025 |
2026 |
|
|
CTF program spending (pre-pandemic adjusted) |
$367.3 |
$379.7 |
$391.7 |
$404.0 |
$416.2 |
|
Debt charges |
$26.0 |
$31.4 |
$35.6 |
$38.6 |
$40.9 |
|
Total spending |
$393.3 |
$411.1 |
$427.3 |
$442.6 |
$457.1 |
|
Revenue |
$389.9 |
$411.5 |
$432.9 |
$455.5 |
$476.8 |
|
Budgetary balance |
-$3.4 |
$0.4 |
$5.6 |
$12.9 |
$19.7 |
“Modest spending restraint could get the budget back to balance, but Prime Minister Justin Trudeau is using the cloud of the pandemic to go on a debt-fueled spending binge,” said Terrazzano. “It’s time to stop racking up a bigger tax bill and balance the budget.”
The CTF’s 2022-23 pre-budget submission is available here. The CTF’s presentation to the federal finance committee is available here.