Mr. Speaker, the Prime Minister had a clever slogan during the election: spend less, invest more. I know the Liberals are fond of slogans, and it was a good one, even in my opinion. Spending less sounds good and investing more sounds good. I want to believe the Prime Minister when he says that.
I think a lot of Canadians wanted to believe the Prime Minister when he said that. In fact, I think a lot of Canadians believed that promise, along with his promise to negotiate a win with the U.S., which we are still waiting for. That is probably why many Canadians voted for this Prime Minister. Let us give the Prime Minister the benefit of the doubt for a minute, believe him and assess his promise to spend less and invest more.
Is the Prime Minister spending less on operating expenses? No. The Parliamentary Budget Officer says, in fact, that the average deficit over the next five years will be double what was projected last year in the fall economic statement. The Parliamentary Budget Officer says, “This deterioration primarily reflects new ‘day-to-day’ operating measures and increased provisions for liabilities.” That does not sound like spending less.
The PBO goes on to say:
Absent measures since the [fall economic statement] and measures announced in Budget 2025, the day-to-day operating balance would be in a surplus position over 2026-27 to 2029-30. New operating measures since the 2024 FES and in Budget 2025 shift the day-to-day operating balance from a surplus to a deficit position....
“From a surplus to a deficit” does not sound like spending less either. In fact, it is the exact opposite. The PBO says we are spending more. Perhaps that is why the government is so mad at the PBO and is looking to fire him: He is telling the truth to Canadians. Well, thank God the PBO is here to tell the truth to the Canadian people, because we sure are not getting it from the government.
Let me ask the same question about the second promise, the promise to invest more. Is the Prime Minister investing more? No. Instead, the Prime Minister has dressed up normal operating spending and now calls it investment. Again, we have the PBO to thank for shining a light on the Prime Minister's attempt to cook the books. The PBO says, “the Government’s definition of capital investments is overly expansive.” The PBO goes on to say that 30% of what the Prime Minister says is investment is actually just day-to-day spending. That does not sound like investing more. In fact, it sounds like spending more.
Again, I wonder if that is why the government is so intent on driving the PBO out of office. The Liberals do not like the rules and do not want to play by them, so instead they will get rid of the referee.
We have heard similar promises before. For 10 years, we have had Liberals in power promising us that deficit spending would make us richer. If I had a nickel for every time I heard the word “investment”, I would not be a politician.
We were told that even though the government was going to spend more, it was going to exercise financial restraint at the same time. In fact, in the last federal budget, some 18 months ago because they needed extra time, the Liberals set out three key fiscal anchors: the first was to cap federal deficits at about $40 billion, the second was to maintain a declining debt-to-GDP ratio and the third was to shrink deficits to below 1% each year.
Unfortunately, budget 2025 breaks every single one of these goalposts. These goalposts were not selected out of thin air. In fact, it was the Liberal government that put them in place. In the 2024 budget, the Liberals said that reducing the federal debt-to-GDP ratio was “key not only for fiscal sustainability, but also to preserve Canada's AAA credit rating, which helps maintain investors’ confidence and keeps Canada's borrowing costs as low as possible.”
The same government that said last year that these goals were so important to our AAA rating now wants us to believe that they are not important and that we should therefore adopt some new fiscal anchors. I think Canadians can be forgiven for questioning why that is.
The deficit has ballooned to over $78 billion. Rather than lowering the debt-to-GDP ratio, budget 2025 will actually see it rise in this fiscal year and in the next several fiscal years. Last, deficits will not stay below 1% of GDP but will rise to 2.5% of GDP in this fiscal year. In fact budget 2025 shows that deficits will be above 1% of GDP well past 2030.
I know that the Liberals love to talk about our AAA credit rating, but what they do not like to talk about is what the credit agencies are saying today. In fact just after the introduction of this budget, Fitch, one of the international credit rating agencies, took note of the budget, unfortunately not in a good way, and said of Canada that “persistent fiscal expansion and a rising debt burden have weakened its credit profile and could increase rating pressure over the medium term.”
Fitch went on to warn the government, and I hope the Liberals are listening to this warning, that “the Canadian government has a track record of upward deficit revisions, with subsequent budget updates consistently worse than prior projections.... [F]ederal finances run a high risk of further deterioration.”
These are not my words, and they are not the words of the opposition; they are the words of our credit rating agency, upon which our AAA credit rating depends. That is a troubling analysis by the credit agency, because any change to that credit rating would be catastrophic and would lead to much higher debt interest charges for Canadians.
However, behind every number is a human story, a story of a family struggling to get by to make ends meet. I want to share just one of those stories from one of my residents, who wrote to me just after the introduction of the budget. His name is Ryan. He said:
I am writing to express my deep concern about the rising cost of living in our community....
I have lived in the same neighbourhood for more than a decade, and almost every essential cost of living has increased dramatically....
To illustrate this, I reviewed my own expenses from 2013 compared to 2025, and here are actual numbers from my household
This is how people budget: They keep track, and they assess. I hope the Liberals are taking notes.
Ryan said that groceries are up 200%; electricity, 133%; cable and Internet, 150%; vehicle insurance, 300%; fuel, 100%; water and sewer, 168%; accounting fees, 150%; and property taxes, 112%. He calculated that his personal cost of living has increased by 154% over the last 10 years. He said, “From my perspective, and from the perspective of many residents struggling with similar increases, this situation feels fundamentally unfair.” I agree; this is unfair to Canadians.
As of 8:45 this morning, every Canadian's share of the national debt is over $30,000; in fact it is $30,568. To that, add our provincial share. I am in Ontario, where that is another $29,282, for a total of just shy of $60,000.
Seven weeks ago this morning, I had my first baby girl, and that has changed my life dramatically, with increasingly less sleep. However, it also keeps me up at night that the federal government, by its actions, has handed my daughter a credit card bill of $30,000. Before she has even taken her first steps in life, she has a federal debt.
However, I do believe there is hope for an affordable Canada. First, the government must return to its senses and drop the accounting gimmicks. Most important, it must treat every tax dollar with the humility and the sanctity of trust that it demands. Canadians work hard for every dollar they earn, and I want a future for my daughter and for all Canadians that is full of opportunity, not debt. That is a Canada I will fight for.