In an interview with TVA Nouvelles, Canada’s Finance Minister Chrystia Freeland reiterated the merits of Tuesday’s economic update, which includes $13.2 billion in additional spending over six years.
• Also read: $13.2 billion in new spending over six years: A return to a balanced budget is not in sight in the current federal economic report
The Liberal Party of Canada (PLC) had already announced additional spending in its spring budget, bringing the total spending to $21 billion.
“I can assure you and all Quebecers that we have an economic plan that is responsible on the fiscal side and at the same time allows us to make the necessary investments,” Ms. Freeland said in an interview with TVA Nouvelles.
However, host Pierre-Olivier Zappa points out that the deficits expected in the coming years are higher than initially expected and that the country could potentially be caught up in this national debt.
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Ms. Freeland does not share Mr. Zappa’s concerns and seeks to reassure, saying she also has “confidence in Canada’s economy” as well as her party’s economic plan.
“We have the lowest debt and the lowest deficit in the entire G7,” argues the finance minister first, before adding that Canada also has the “AAA credit rating,” the highest possible rating, and that is not decided by me, but by the credit bureaus .”
To justify the new spending announced, Ms. Freeland reminds that Canada has no choice but to “make the necessary investments” to have a strong economy and a strong economic plan.
Mr. Zappa made a point of telling his guest that real estate prices have doubled since his election: “There are baby boomers who are watching us tonight and they will certainly be happy when they hear this because it will make them the richest in their real estate Generation of history. “Inheritance of the estate.”
Given this state of affairs, Mr. Zappa wonders whether we can conclude that the Liberal government’s efforts are not producing the expected results.
The latest update provides an additional $15 billion for the Housing Loan Program, which will support the construction of 30,000 new homes.
In addition, the Affordable Housing Fund was granted $1 billion over three years to finance the construction of 7,000 housing units.
Finally, the government intends to target short-term rental platforms such as AirBnB, potentially releasing 30,000 apartments.
“I agree with you that there is an emergency, that this is an issue of generational inequality. And that’s why we need to invest in housing,” agrees Ms. Freeland.