Discussion · Government Orders
Michael Chong Conservative
“The Prime Minister keeps setting budget goals and missing them. If this continues, markets will lose trust in Canada's ability to pay its debts, just like what happened in the 1990s and recently in the United States and France. His father's last budget had deficits half the size of this government's deficits.”
“Mr. Speaker, my colleague makes a very good point. The Prime Minister risks losing fiscal credibility with markets by following the pattern, frankly, of the previous Trudeau government in establishing ever-changing fiscal anchors and never meeting them. We all saw this story play out in the mid-1990s. Markets can very quickly lose confidence in a government’s ability to service its debt and to finance its operations. The bond markets have in recent years gone wobbly, as they have in recent months in the United States and in France. The government is not on a fiscally prudent track. The irony is that Mr. Trudeau’s last budget was far more fiscally conservative, with deficits half of those of the current Prime Minister’s budgets.”
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Mr. Speaker, my colleague makes a very good point. The Prime Minister risks losing fiscal credibility with markets by following the pattern, frankly, of the previous Trudeau government in establishing ever-changing fiscal anchors and never meeting them. We all saw this story play out in the mid-1990s. Markets can very quickly lose confidence in a government’s ability to service its debt and to finance its operations. The bond markets have in recent years gone wobbly, as they have in recent months in the United States and in France. The government is not on a fiscally prudent track. The irony is that Mr. Trudeau’s last budget was far more fiscally conservative, with deficits half of those of the current Prime Minister’s budgets.