Canadians should expect even more spending in federal fall economic statement

The Trudeau government will soon release its fall economic statement. Though technically intended to be an update on the fiscal plan in this year’s budget, in recent years the fall economic statement has more closely resembled a “mini-budget” that unveils new (and often significant) spending commitments and initiatives.

Let’s look at the data.

The chart below includes projections of annual federal program spending from a series of federal budgets and updates, beginning with the 2022 budget and ending with the latest 2024 budget. Program spending equals total spending minus debt interest costs, and represents discretionary spending by the federal government.

Clearly, there’s a trend that with every consecutive budget and fiscal update the Trudeau government revises spending estimates upwards. Take the last two fiscal years, 2023/24 and 2024/25, for example. Budget 2022 projected annual program spending of $436.5 billion for the 2023/24 fiscal year. Yet the fall economic statement released just months later revised that spending estimate up to $449.8 billion, and later releases showed even higher spending.

The issue is even more stark when examining spending projections for the current fiscal year. Budget 2022 projected annual spending of $441.6 billion in 2024/25. Since then, every subsequent fiscal release has revised that estimate higher and higher, to the point that Budget 2024 estimates program spending of $483.6 billion for this year—representing a $42.0 billion increase from the projections only two years ago.

Meanwhile, as spending estimates are revised upwards, plans to reduce the federal deficit are consistently pushed off into later years.

For example, the 2022 fall economic statement projected a deficit of $25.4 billion for the 2024/25 fiscal year, and declining deficits in the years to come, before reaching an eventual surplus of $4.5 billion in 2027/28. However, subsequent budgets and fiscal updates again revised those estimates. The latest budget projects a deficit of $39.8 billion in 2024/25 that will decline to a $26.8 billion deficit by 2027/28. In other words, though budgets and fiscal updates have consistently projected declining deficits between 2024/25 and 2027/28, each subsequent document has produced larger deficits throughout the fiscal outlook and pushed the timeline for balanced budgets further into the future.

These data illustrate the Trudeau government’s lack of accountability to its own fiscal plans. Though the unpredictable nature of forecasting means the government is unlikely to exactly meet future projections, it’s still reasonable to expect it will roughly follow its own fiscal plans. However, time and time again Canadians have been sold a certain plan, only to have it change dramatically mere months later due to the government’s unwillingness to restrain spending. We shouldn’t expect the upcoming fall economic statement to be any different.

Authors:

Jake Fuss and Grady Munro

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Trudeau government wants to give CBC more money

Business / 8 hours ago

Why living in Canada has become impossible

Business

Trudeau government wants to give CBC more money

Published on December 30, 2024

Todayville

From the Canadian Taxpayers Association

By Kris Sims

The CBC used to air The Simpsons after school.

One of the best episodes was the Cape Fear homage where an FBI agent is trying to change Homer’s last name to Thompson.

After hours of explanation, the kids have fallen asleep, Marge has given up and the agent says, “When I step on your foot and say: ‘Hello Mr. Thompson,’ you nod your head! Got it?!”

Homer did not get it.

The Liberal members of Parliament on the heritage committee still don’t get it either.

The committee has sent a report to the House of Commons urging the government to give the CBC even more money.

“That the Government of Canada provide a substantial and lasting increase in the parliamentary appropriations for CBC/Radio-Canada, allowing it to eliminate its paid subscription services and gradually end its reliance on commercial advertising revenues,” reads the report.

Really? More money? The CBC already takes $1.4 billion year from taxpayers. And that’s not enough?

That amount of money could already cover the salaries of about 7,000 police officers and 7,000 paramedics.

If Trudeau’s MPs want to give the CBC more money so that it can get rid of its advertising and subscription funding, that means a huge cost for taxpayers.

According it’s latest annual report, the CBC collected about $493 million in revenue other than government funding in 2023-24, the bulk being subscription fees and advertising.

This means these Trudeau government MPs want taxpayers to fund the CBC to the tune of about $2 billion per year.

This is the opposite of what needs to happen.

The CBC should be defunded for three key reasons.

The CBC is a huge waste of money, nearly nobody is watching it and journalists should not be paid by the government.

The committee knows this.

And we know they know because the Canadian Taxpayers Federation told them to their faces in testimony before the committee.

CBC CEO Catherine Tait repeatedly testified at the committee and each time she inadvertently made a stronger case to defund the CBC, due to her entitlement and lack of accountability.

Tait refused to say if she will take a severance when she leaves the CBC next year, claiming it’s a personal matter.

It’s not personal if it’s taxpayers’ money.

Documents obtained by the Canadian Taxpayers Federation show Tait is paid between $460,000 and $551,000 this year, with a bonus of up to 28 per cent.

That’s a bonus of up to $154,448. That’s more than the average Canadian family earns in a year.

Just before Christmas last year, Tait cried broke to the committee and afterwards the CBC announced lay offs in its newsrooms.

Documents obtained by the CTF show the CBC handed out big bonuses that year anyway, costing taxpayers $18 million.

As the CBC fan group Friends of Canadian Media put it: “This decision is deeply out of touch and unbefitting of our national public broadcaster.”

It gets worse because the state broadcaster isn’t even doing a good job.

According to the CBC’s latest quarterly report, CBC News Network’s national audience share is 1.7 per cent.

Documents obtained by the CTF show the CBC’s supper hour newscast drawing microscopic audiences, with 0.7 per cent of Toronto watching the six o’clock news on CBC.

Journalists should not be paid by the government because it’s an obvious conflict of interest.

You can’t hold the powerful government to account if you’re counting on that government for your paycheque.

Such government funding of media has contributed to the rapid erosion of trust in the news media, with 61 per cent of Canadians saying they think journalists are “purposely trying to mislead people by saying things they know are false or gross exaggerations.”

CBC’s entertainment programming barely fares better. The Murdoch Mysteries, which is not produced by the CBC, pulls in its biggest audience with about 1.9 per cent of the population watching.

The politicians on the committee know all of this, and yet, like Homer Simpson, they are not getting the message.

If the CBC needs money, it should earn that money itself.

Taxpayers can’t afford the state broadcast’s bill now, let alone hundreds of millions more.

It’s time to defund the CBC.

Kris Sims is the Alberta Director for the Canadian Taxpayers Federation and a former member of the Parliamentary Press Gallery.