Economy
Federal government consistently spends beyond high spending targets

From the Fraser Institute
By Matthew Lau
Post-pandemic, the Liberals raised annual spending by nearly $100 billion versus their pre-pandemic fiscal plan.
As budget season approaches, one thing is clear. If the Trudeau government is notable for planning astonishingly high levels of spending, it’s equally notable for overspending beyond its original plans. At all times—when they first took office in 2015, in the pre-pandemic years, and now—the Liberals have consistently raised their spending targets, then spent more than targeted.
Begin at the beginning. Inheriting a projected balanced budget in 2015, the Liberals proceeded to spend federal finances into deficit in the 2015-16 fiscal year (ended March 31, 2016) before presenting the first budget of their own in the spring of 2016. That budget called for $1,219 billion in program spending over the next four years. What the government actually ended up spending was $1,269 billion for the 2016-17 to 2019-20 fiscal years, blowing past their initial plan by a cumulative $50 billion.
Even worse, they set government spending on a higher trajectory—while cumulative spending in the Liberals’ first four full fiscal years in office was 4.1 per cent more than initially planned, the spending level for fiscal year 2019-20 alone was actually 11.1 per cent above the original target. So not only did the Liberals overspend their Budget 2016 fiscal plan by $50 billion over four years, they significantly weakened the fiscal outlook by permanently raising baseline spending for future years.
That federal program spending exploded to $624 billion in 2020-21 from $349 billion in 2019-20 is not surprising given the onetime expenses during the pandemic, and the $479 billion in spending in 2021-22 also included pandemic-related costs. But while some COVID spending was justifiable, much of the new spending was not. According to an analysis by Fraser Institute economists, $360 billion in pandemic-related spending, at least 25 per cent was unnecessary waste.
What about after the pandemic? In post-pandemic fiscal year 2022-23, program spending was $448 billion and debt interest expenses $35 billion, for a total of $483 billion. Compare that to what the Liberals initially planned in Budget 2018, the earliest fiscal plan to project out to 2022-23. Budget 2018, itself no model of fiscal responsibility, planned $350 billion in program spending and $33 billion in debt interest costs for a total of $383 billion (excluding a $3 billion “adjustment for risk”) in 2022-23.
So post-pandemic, the Liberals raised annual spending by nearly $100 billion versus their pre-pandemic fiscal plan. Comparing expected spending for 2023-24 with the plan in Budget 2019 shows a similar discrepancy. The 2023 Fall Economic Statement projects $450 billion in program spending and $496 billion in total spending versus $369 billion in program spending and $402 billion in total spending for 2023-24 in the Liberals’ 2019 fiscal plan (which itself contained material upward spending revisions from Budget 2018).
Speaking of the Fall Economic Statement, it also revised the spending trajectory upward from what the Liberals budgeted in the spring. In Budget 2023, the Liberals projected $2,395 billion in program spending over the next five fiscal years—or $2,630 billion including interest expenses. Because of new spending commitments and higher borrowing costs, five-year program spending is now expected to be $2,422 billion ($28 billion higher) and total spending $2,688 billion ($58 billion higher).
That’s a significant spending plan increase in only half a year. However, given the Trudeau government’s track record of missing its targets, don’t be surprised if actual spending comes in even higher than the latest forecast.
Author:
Alberta
Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

From Pierre Poilievre
Business
Why it’s time to repeal the oil tanker ban on B.C.’s north coast

The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority
From the Canadian Energy Centre
By Will Gibson
Moratorium does little to improve marine safety while sending the wrong message to energy investors
In 2019, Martha Hall Findlay, then-CEO of the Canada West Foundation, penned a strongly worded op-ed in the Globe and Mail calling the federal ban of oil tankers on B.C.’s northern coast “un-Canadian.”
Six years later, her opinion hasn’t changed.
“It was bad legislation and the government should get rid of it,” said Hall Findlay, now director of the University of Calgary’s School of Public Policy.
The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern B.C. ports.
Targeting products from one sector in one area does little to achieve the goal of overall improved marine transport safety, she said.
“There are risks associated with any kind of transportation with any goods, and not all of them are with oil tankers. All that singling out one part of one coast did was prevent more oil and gas from being produced that could be shipped off that coast,” she said.
Hall Findlay is a former Liberal MP who served as Suncor Energy’s chief sustainability officer before taking on her role at the University of Calgary.
She sees an opportunity to remove the tanker moratorium in light of changing attitudes about resource development across Canada and a new federal government that has publicly committed to delivering nation-building energy projects.
“There’s a greater recognition in large portions of the public across the country, not just Alberta and Saskatchewan, that Canada is too dependent on the United States as the only customer for our energy products,” she said.
“There are better alternatives to C-48, such as setting aside what are called Particularly Sensitive Sea Areas, which have been established in areas such as the Great Barrier Reef and the Galapagos Islands.”
The Business Council of British Columbia, which represents more than 200 companies, post-secondary institutions and industry associations, echoes Hall Findlay’s call for the tanker ban to be repealed.
“Comparable shipments face no such restrictions on the East Coast,” said Denise Mullen, the council’s director of environment, sustainability and Indigenous relations.
“This unfair treatment reinforces Canada’s over-reliance on the U.S. market, where Canadian oil is sold at a discount, by restricting access to Asia-Pacific markets.
“This results in billions in lost government revenues and reduced private investment at a time when our economy can least afford it.”
The ban on tanker traffic specifically in northern B.C. doesn’t make sense given Canada already has strong marine safety regulations in place, Mullen said.
Notably, completion of the Trans Mountain Pipeline expansion in 2024 also doubled marine spill response capacity on Canada’s West Coast. A $170 million investment added new equipment, personnel and response bases in the Salish Sea.
“The [C-48] moratorium adds little real protection while sending a damaging message to global investors,” she said.
“This undermines the confidence needed for long-term investment in critical trade-enabling infrastructure.”
Indigenous Resource Network executive director John Desjarlais senses there’s an openness to revisiting the issue for Indigenous communities.
“Sentiment has changed and evolved in the past six years,” he said.
“There are still concerns and trust that needs to be built. But there’s also a recognition that in addition to environmental impacts, [there are] consequences of not doing it in terms of an economic impact as well as the cascading socio-economic impacts.”
The ban effectively killed the proposed $16-billion Eagle Spirit project, an Indigenous-led pipeline that would have shipped oil from northern Alberta to a tidewater export terminal at Prince Rupert, B.C.
“When you have Indigenous participants who want to advance these projects, the moratorium needs to be revisited,” Desjarlais said.
He notes that in the six years since the tanker ban went into effect, there are growing partnerships between B.C. First Nations and the energy industry, including the Haisla Nation’s Cedar LNG project and the Nisga’a Nation’s Ksi Lisims LNG project.
This has deepened the trust that projects can mitigate risks while providing economic reconciliation and benefits to communities, Dejarlais said.
“Industry has come leaps and bounds in terms of working with First Nations,” he said.
“They are treating the rights of the communities they work with appropriately in terms of project risk and returns.”
Hall Findlay is cautiously optimistic that the tanker ban will be replaced by more appropriate legislation.
“I’m hoping that we see the revival of a federal government that brings pragmatism to governing the country,” she said.
“Repealing C-48 would be a sign of that happening.”
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