(Ottawa) In order to reduce inflationary pressures at home, Conservative Party Leader Erin O’Toole is urging Prime Minister Justin Trudeau to drop the $ 100 billion, three-year stimulus package that the Liberal government concocted in its most recent budget.
In a letter he sent to the Prime Minister on Friday and that Press obtained, O’Toole says investments of this magnitude from Ottawa are likely to cause more damage to the economy as inflation soars to highs not seen in nearly two decades.
What’s more, it will needlessly increase the accumulated debt, which jumped by more than $ 340 billion due to the pandemic in fiscal year 2020-2021. The anticipated deficit for the current fiscal year, which ends March 31, is approximately $ 154 billion. The accumulated debt surpassed the $ 1114 billion mark during the last fiscal year. Since the Liberals took office in 2015, the accumulated debt has almost doubled. It stood at $ 615 billion in 2015-2016.
Almost a third of the amount spent on the Trudeau government’s stimulus plan ($ 30 billion) must be used to create a national network of child care centers at $ 10 a day by 2026.
Statistics Canada reported this week that the Consumer Price Index (CPI) continued to rise in September at a faster than expected pace. The CPI jumped 4.4% last month at an annualized rate, the highest level in 18 years. Many economists believe that high inflation will have to be dealt with for some time to come.
In his missive, the Conservative leader also indicates that the Prime Minister must meet as soon as possible with the President of the United States, Joe Biden, in order to work together to solidify the supply chain in North America.
He also calls for the rapid resumption of parliamentary work in order to address crucial issues such as economic recovery and rising costs of living. Mr. Trudeau has already indicated that parliamentary work will resume on November 22, two months after the federal election which saw voters elect a Parliament almost identical to the previous one.
Erin O’Toole’s proposals
In his letter, the Conservative leader submits a few proposals to Prime Minister Trudeau.
“You must act urgently in the face of the risks posed by inflation and keep the Bank of Canada’s monetary policy framework on the inflation target of 1% to 3%. During the election campaign, you didn’t seem to care about the inflation target, which sends the wrong message. You must resist the temptation to include growth or other broadening of the social mandate within the framework of the Bank of Canada ”, affirms the Conservative leader.
“You need to review the commitment to a new additional deficit of $ 100 billion in the 2021 budget. The overspending intensifies inflationary pressures and will result in a higher structural deficit, which will be impossible to meet after the pandemic. The Parliamentary Budget Officer was already fairly critical of this $ 100 billion spending, calling it “risky” for our economic outlook, before rising inflation and other serious risks to our economy ”, he adds.
Mr. O’Toole also invites the Trudeau government to present an economic and financial update this fall to confirm that it is giving up this “additional deficit”.
The House of Commons must quickly resume its work in order to have a serious fall session following the election. Many provinces are preparing fall economic statements to provide their citizens with a transparent assessment of the state of their economy, when the federal Parliament will barely have time to debate the Speech from the Throne.
Erin O’Toole, Leader of the Conservative Party of Canada
In his letter, O’Toole also urges Mr. Trudeau to phase out all emergency programs that have been put in place to support families, workers and businesses during the COVID-19 pandemic.
On Thursday, Mr. Trudeau and Minister of Finance Chrystia Freeland announced an overhaul of assistance programs for businesses and individuals to limit them to sectors hardest hit by the health crisis, such as tourism, restaurants and accommodation.
Read the text “Ottawa injects 7.4 billion for more targeted measures”
“Our economy is rebounding, and we are winning the fight against COVID,” said Mme Freeland, noting in broad strokes that the country has now returned to the level of employment seen before the pandemic.