Liberals' Re-Election Platform Takes Shape in Budget Plan

Strategic Insights -

The Liberal government's fall economic statement has provided a framework for their re-election platform, with a focus on spending $70-billion to $100-billion over three years to kickstart the economy. The plan includes a national child care program and green spending, but does not mention pharmacare. Finance Minister Chrystia Freeland framed the child care plan as an essential step to making Canada more economically competitive, but the NDP has pledged to advance pharmacare as a priority.

Key Takeaways:

  • The Liberal government plans to spend $70-billion to $100-billion over three years to kickstart the economy, with a focus on a national child care program and green spending.
  • The child care plan is expected to increase women's participation in the labor force, making Canada more economically competitive.
  • The NDP has pledged to advance pharmacare as a priority, but it was not mentioned in the fall economic statement.
  • The Liberal government has left some details of their future plans vague, but they will be rolled out in the spring.
  • The program is expected to include grants for home refits and spending on electric vehicle charging stations as part of the green recovery plan.
  • The NDP has portrayed pharmacare as a key condition of supporting the Liberal government in confidence votes.
  • The Liberal government's re-election platform is expected to turn on the stimulus plan, with the government trying to convey the message that they are focused on the pandemic now.
  • The Conservatives are trying to walk a line between attacking big deficits and presenting their own economic growth plan.

Statistics:

  • The projected deficit for the current 2020-21 fiscal year is $381-billion, assuming the pandemic doesn't get worse.
  • The next year's projected deficit is no lower than $156.7-billion, and the 2022-23 deficit will range from $89.6-billion to $109.6 billion.
  • The four different scenarios presented by Finance Canada all have the pandemic lasting until 2022.

Sources:

  • The Globe and Mail, "Liberals promise stimulus spending to come next spring in economic statement" (no date given)