Budget 2023

Vincent J. Curtis

29 Mar 23

Canada’s pathetic Minister of Finance showed in her budget of 2023 that Canadian finances continue to be badly mismanaged.  Wild swings between forecasts and actuals make you wonder if those in Ottawa know what they’re doing.  The only certain thing is that spending will go up, a lot.

Last year, Freeland projected roughly $455 billion in expenditures, and a deficit of $52.8 billion.  After many months of oil prices over $100 per barrel, Freeland projected last November that the deficit would come in around $36.4 billion due to those windfall tax revenues.  It actually came in at $43 billion; at least she dropped the pretense of numbers after the decimal point.  Freeland was only off by $1.5 billion per month between November and March!

This year, Freeland is increasing spending to $491 billion, an jump of 8 percent over last year, higher than inflation, and she expects a deficit of $40.1 billion.  If the Liberals had held spending constant for one year, they’d balance the budget, like nearly all the provinces now have.  I don’t believe Freeland’s projections for future deficits, given her track record.

The inflation we now suffer is a Canadian problem, made in Canada because of reckless spending and irresponsible financing by the Bank of Canada during the COVID craziness.  Spending increases more than the rate of inflation and continued deficit spending don’t solve the inflation problem, and Bank of Canada measures to reduce inflation will only throw the economy into recession.

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