Last November, as you may recall, Justin Trudeau and Finance Minister Bill Morneau stated that the Conservatives left a deficit of $5.4 billion. Canada, they proclaimed, was in the red thanks to the former Conservative government. The nasty comments about Conservatives being bad fiscal managers were howled by Liberal supporters far and wide.
But then, quietly in late November 2015 the Fiscal Monitor reported that Canada was still in the black with a small surplus. The Liberals insisted that the year end would be $5.4 billion of deficit though.
Today CBC.ca reported via the Fiscal Monitor that Canada was on track for a $7.5 billion surplus. You can read the story here: http://www.cbc.ca/news/business/ottawa-federal-surplus-deficit-1.3559175. Now to suggest that there’s rounding error or that conditions have changed substantially is ludicrous. The trend from November onward was there. The country’s finances are healthy and ample.
What does this tell us? Well it tells us that Justin Trudeau and Finance Minister Bill Morneau, who have first hand knowledge of the finances like the rest of the Federal Cabinet knew in advance how the country was doing. They knew this when they tabled their budget with its $29.4 billion deficit.
But wait a minute. Is it really going to be a $29.4 billion deficit now? Well that was based on starting from a $5.4 billion deficit. If we reverse the $5.4 billion deficit into a $7.5 billion surplus then the 2016/17 deficit will only be $16.5 billion.
Smells like Jean Chretien and Paul Martin? Yes it does. As you may recall those two always inflated expenses and understated revenues to beat their budget targets and we all sucked it up. Well most people did. There’s another word for this: lying. They lied to Canadians and Canadians were happy that things looked good so they celebrated the lie and the liars.
Justin Trudeau and Bill Morneau lied to us.
Then again, when have Liberals ever been honest?