Can Canadian Taxpayers Afford this Budget?
April 27, 2021
The federal budget was progressive and supportive. But at what cost?
It’s a unique opportunity for Ottawa to inject significant new ideas that will shape our country for decades.
Canadians are emotionally drained from the health and financial ills that started early last year when COVID-19 struck. We are tired, frustrated, and eager for a new beginning, for new ideas.
The budget delivered as advertised. Two prominent new ideas: a national childcare program, and a green approach to our environment.
These initiatives are welcome news to many.
Plus, there was focus on immediate needs. The government is spending freely to support Canadians during the third wave of the pandemic.
The annual federal deficit is projected to be $354 billion. That leads us to the question: Is this budget affordable? This does not diminish the benefits of items proposed.
There is a direct cost of government programs plus the indirect cost of interest on our massive federal deficit. Ultimately it is taxpayers that pay the bills.
Our country is in a crisis. And during a crisis bold measures are needed. The budget was bold but there was one thing missing.
Bold measures should include a proactive strategy on how to regain financial stability. This was a perfect opportunity for the government to provide ways and set targets how it could be more efficient.
That’s not a direct criticism. From time to time, all organizations must look at how they deliver their goods and services to see where efficiencies can be gained.
A strong investment in Canadians was needed. That was the budgets strength.
We still have that one question. Is the arithmetic of this budget affordable?
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com