More spending should be tied to economic growth, Scheer says
Conservatives making Liberal economic policies focus of election run-up
OTTAWA— Andrew Scheer says the government should more closely align the growth in government spending to population and economic growth.
In a year-end press conference on Parliament Hill Thursday, Scheer rejected the idea a Conservative government would have to “cut like crazy” to get the federal books back in black.
“What we have to stop is the spending like crazy that’s going on now,” Scheer told reporters outside the House of Commons.
“The rate of growth of government spending is the problem. It’s not about cutting, it’s about ensuring the growth of government spending is more in line with population growth and economic (growth).”
The Conservatives have made the Liberal government’s economic management a central theme of their opposition in the lead up to the 2019 election.
But so far, they’ve offered little in terms of concrete policies outside of promises to lower taxes and return to balanced budgets after years of Liberal deficit spending. Scheer’s comments on Thursday offer a hint of what could ground that economic policy.
“Canadians know that balancing the budget is important,” Scheer said in prepared remarks.
“They know that big deficits today mean higher taxes to- morrow. And they know that a higher debt today means less money for the programs and services they need for the future.”
The governing Liberals have preferred to anchor their economic health projections on the debt-to-GDP ratio — how large the national debt is growing compared to how fast the country’s economy is growing.
According to Finance Minister Bill Morneau’s November fiscal update, the debt-to-GDP ratio is expected to come in at 30.9 per cent this fiscal year, gradually declining to 28.5 per cent in 2023-24.
While a report from the independent Parliamentary Budget Officer in September assessed that the federal government’s long-term fiscal plans were sustainable, a report from the same office earlier this month suggested that deficits in the coming years will be billions more than the Liberal government projected.
“Canadians know that balancing the budget is important.” ANDREW SCHEER CONSERVATIVE PARTY LEADER