Mr. Speaker, I would say that the 1995 cuts were necessary because of the $42 billion deficit we had inherited from the Conservatives. However, it took maybe three years to balance the budget. After that, we re-invested in the economy and were able to sign the health agreement with the provinces that was in effect from 2004 to 2014. The Conservatives are trying to take credit for it, but that was a Liberal plan, a 10-year plan with a 6% per year increase in health transfers. That was after we returned to a balanced budget. We had the money to make these investments in health, education and social programs.
In the House of Commons on June 9th, 2011. See this statement in context.