In an interview with TVA Nouvelles, Canada’s Minister of Finance, Chrystia Freeland, maintained the merits of Tuesday’s economic update, which provides for additional spending of $13.2 billion over six years.
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The Liberal Party of Canada (PLC) had already announced additional spending in its spring budget, bringing the total new spending to $21 billion.
“I can assure you and all Quebecers that we have an economic plan which is responsible on the fiscal side and which at the same time allows us to make the investments which are necessary”, indicated in an interview with TVA Nouvelles Mme Freeland.
The host Pierre-Olivier Zappa points out, however, that the deficits expected for the coming years are higher than initially expected, and that the country could possibly be caught up by this public debt.
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Mme Freeland does not share Mr. Zappa’s concerns and wants to be reassuring, saying she has “confidence in Canada’s economy” as well as in her party’s economic plan.
“We have the lowest debt and deficit in the entire G7,” first argues the Minister of Finance, before adding that Canada also enjoys the “AAA credit rating, which is the highest rating possible, and it’s not me who decides that, it’s the credit agencies.”
In order to justify the new expenses announced, Mme Freeland recalls that, to have a strong economy as well as a strong economic plan, Canada has no other choice but to “make the necessary investments.”
Mr. Zappa made a point of telling his guest that, since his election, house prices had doubled: “There are baby boomers watching us this evening and who are certainly happy to hear that because it actually the richest generation in history with their real estate assets.
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In view of this state of affairs, Mr. Zappa questions himself and wonders if we can conclude that the liberal government’s efforts are not yielding the expected results.
The recent update provides an additional $15 billion in the Apartment Construction Loan Program that will support the construction of 30,000 new homes.
$1 billion was also granted over three years to the Affordable Housing Fund to finance the construction of 7,000 housing units.
Finally, the government intends to attack short-term rental platforms, such as Airbnb, in order to potentially free up 30,000 homes.
“I agree with you that there is an emergency, that there is a question of generational inequality. And this is why we must invest in housing,” agrees M.me Freeland.