The Budget

The House debated the government’s budget, which members connected to the Building Canada Strong Act framework on project approvals, supply chains and labour rules, along with its spending measures. Liberals pointed to investments in housing, arts and culture, electric vehicle chargers and Indigenous reconciliation, saying spending is needed during a global crisis, and defended the federal role in health care as provinces hold primary responsibility. Conservatives opposed the budget, arguing it runs large deficits that future generations will pay, spends more on debt interest than health transfers, does not lower prices or cut red tape for small businesses, and includes a costly rail project; they also asked about tax support for the oil and gas sector. The NDP opposed the budget, saying it favours corporations and the wealthy over working people, does too little on affordable housing and health care, and spends heavily on a pipeline instead of climate action; the Green member raised the absence of a cost-benefit analysis for the pipeline. Bloc Québécois members criticized the shortfall in health care funding relative to rising costs and the size of the clean electricity investment.Written by AI from the debate. Updated .

Official text (opens in a new tab)

36 statements

Eric St-Pierre, Honoré-Mercier

Liberal
“The new budget lets Canadian artists pay no tax on income up to $45,000. I want the member for Spadina—Harbourfront to explain how this will help people in her riding.”
Official Hansard

Mr. Speaker, yesterday’s budget included tax measures for artists. If someone is a Canadian artist, for example, they will not have to pay tax on their income up to $45,000. The member mentioned TIFF, the Toronto International Film Festival. I am a big fan myself. Can the member for Spadina—Harbourfront outline other examples of how this tax measure would benefit the fine residents of her constituency?

Chi Nguyen, Spadina—Harbourfront

Liberal
“I support the budget's plans for arts and culture. The budget spends $4 billion on the arts and helps artists with their income. This will make life more affordable for people starting out in the arts.”
Official Hansard

Mr. Speaker, OCAD University, one of the important post-secondary institutions in my riding, is really thrilled about this particular measure to support the income of artists. We know there are affordability challenges, and we know that people getting started in the arts need a real shot at this. The investments overall, the $4 billion in arts and culture, are going to make a significant difference for fighting for arts and culture in our country.

Ziad Aboultaif, Edmonton Manning

Conservative
“This budget will add too much debt for Canadians and leave our children to pay it off. I want the member to admit that the government's spending is putting too much debt on Canadians.”
Official Hansard

Mr. Speaker, the presented budget would bring lots of debt to Canadian households, which is something that would be unbearable. It is already unbearable and will become even worse in a few years. Somebody has to pay this debt, and that somebody is our future generations. Is the hon. member not worried about how much debt Canadians will have to take on in the next years just because of the way the government has been handling the books?

Chi Nguyen, Spadina—Harbourfront

Liberal
“The world is facing a real crisis, so the government must spend money to support people and keep them from falling behind. We need to invest in our country right now.”
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Official Hansard

Mr. Speaker, we are living through a time of real global crisis, and that means our government needs to respond with supports and the resourcing to make sure people do not fall behind. The systemic investments that will improve our country need to happen now.

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“Quebec and the other provinces asked the government to increase health care funding to match rising costs. The government ran up a big deficit and spent money on many other things, but not on health care. I want to know why.”
Official Hansard

Mr. Speaker, I would like to know whether my colleague opposite is as disappointed as I am by her government’s decision not to maintain the health transfer escalator at a level that reflects the actual increase in health care costs. It has to be said: There was just one high-priority request from the Government of Quebec, and it was also shared by other provinces, namely an adequate health transfer escalator. Once again, the government has found a way to run up an incredible deficit. It had money for all sorts of things, but not for health. Why is that?

Chi Nguyen, Spadina—Harbourfront

Liberal
“The provinces are mainly responsible for health care, so the federal government cannot pay for all of it. We are still investing in mental health, but we must focus on our own responsibilities.”
Official Hansard

Mr. Speaker, I want to remind my colleague that, in sections 91 and 92, the primary driver of responsibility for health care is the provinces. While we know how important it is to make investments in health care and be a partner to our provinces, we cannot shoulder all of it. We are continuing to make very important investments in mental health, in supports. We are making sure we are serving all Canadians, but we want to stay in our lane and focus on the things we are responsible for at the federal government level.

Branden Leslie, Portage—Lisgar

Conservative
“We now spend more money on debt interest than on health care for the provinces. Why does the government think paying bankers and bondholders is better than helping patients?”
Official Hansard

Mr. Speaker, my colleague just made reference to the health care system. Obviously, I assume we have all heard many stories of families or loved ones facing challenges going through our health care system. I am curious what the member thinks about the fact that the totality of all of the money we send to provinces to deliver that health care system has been now dwarfed by the interest on the debt the Liberal government has accrued, and this will be getting worse year over year. Why is it better to send money to bankers and bondholders than to help people in our health care system?

Chi Nguyen, Spadina—Harbourfront

Liberal
“Our budget spends nearly $50 billion on new programs for Indigenous reconciliation. This helps Canadians who need support right now.”
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Official Hansard

Mr. Speaker, one of the things we are doing extraordinarily well in this budget is making significant generational investments in indigenous reconciliation with nearly $50 billion in investment in new measures that allow indigenous communities to get to reconciliation. This is a way of supporting Canadians who need support in these times.

Jenny Kwan, Vancouver East

NDP
“I do not support this budget. It gives massive tax breaks to big corporations while doing almost nothing to lower the cost of living for regular people. It fails to tax the richest Canadians, does not build nearly enough affordable homes, and ignores our need for better health care. The government is choosing to help CEOs instead of working families.”
  • A repeated line

    “The Salvation Army reports one in three Canadians is skipping meals because they cannot afford groceries.”

    Said 4 times by 4 members since November 3.

    Every time it was said
Official Hansard

Mr. Speaker, there were high expectations for this budget, but unfortunately, it misses the mark. This budget benefits the wealthy at the expense of the working class in this country. The Prime Minister talks about the masters of our destiny, but who are they? They are the billionaires and corporate executives he invited to his exclusive investment summit. When we look at this budget, it is clear whose interests come first. Christmas came early for CEOs, foreign investors and arms dealers in this budget. The single biggest item Santa Claus is bringing is a $36-billion mega deduction, over five years for big corporations, more than all the affordability measures that he purports to champion for everyday people. Where is the mega deduction on grocery bills for everyday Canadians? Where is it on their rent? Where is it on their cellphone bill? The government talks a lot about affordability, but this budget does very little to bring down the cost of living for everyday people. Instead, it doubles down on the familiar promise that if we give enough money to the biggest corporations and investors, somehow everyone will benefit. Canadians have heard that promise before. It has not solved the affordability crisis. The government will say that it is spending $4 billion on a one-time increase to the Canada groceries and essentials benefit, which is a fraction compared to the $36-billion mega deduction for corporations. For a single person, that amounts to $267 a year, roughly $20 a month. That money will quickly be swallowed up by rising food prices. It is a temporary measure that does nothing to address the underlying causes of the grocery crisis. One in three Canadians is skipping meals. Food bank use is at a record high. The government has no plan to confront the market concentration and pricing power of Canada’s major grocery chains. The NDP has proposed real solutions: a network of public grocery stores to introduce competition and bring down prices, and a ban on surveillance pricing so corporations cannot use people’s personal data to charge them more. We need to tackle the problems at their source, not simply give people a temporary payment while the big grocery chains continue to profit. On housing, the government has announced that it will end homelessness and expand non-market housing. I love that. On the face of it, it sounds like good news. To end homelessness, Canada needs deeply affordable non-market housing. Experts say that Canada needs at least 200,000 net new non-market homes per year for three decades. Budget 2026 is proposing to deliver 24,000 non-market homes for 10 years. That is just on capital investment. On supportive and operating costs, at least $5.7 billion per year is needed. This plan is entirely dependent on the provinces and territories, which are expected to pay for ongoing operations and wraparound services, including health care and mental health and addiction supports. A building without the necessary operating funding for deep core and support services is not a solution to homelessness. The housing minister would know this better than anyone else. He promised to end homelessness in Vancouver when he was the mayor of Vancouver. Instead of delivering on that promise, homelessness grew under his watch. He blamed the federal and provincial governments for failing to provide the funding at the scale necessary. Since the federal government is not stepping up with operating costs under budget 2026, my question is this: Has the Minister of Housing secured the operating and wraparound funding from the provinces and territories to deliver on the Prime Minister’s promise to end homelessness? If not, this will become just another broken promise. On another metric, the government admitted that Canada failed to build enough non-profit housing. We need to build a million non-profit homes to make a dent in the housing crisis, yet the commitments under budget 2026 are not even one-quarter of that ambition, nowhere near the postwar housing program the Prime Minister promised during the election campaign. I will say this. The budget is not all bad news. The renewal funding for Reaching Home and the Canada housing benefit is good news and something I strongly advocated for. Let me turn to another issue. While the government finds billions for corporate tax breaks and military spending, the cupboards are bare when it comes to essential public services. There is no new investment in child care. There is no increase to the Canada health transfer. The NDP called for an escalator of at least 6% to help the provinces and territories meet growing health care needs. Pharmacare is not even mentioned once in this 511-page budget. People cannot find family doctors. They wait months for treatment. They pay out of pocket for medication. Rather than strengthen the public services Canadians depend on, the government is allowing them to erode. Meanwhile, one in five federal dollars is going to military spending, rising to one in four by 2030. Canadians deserve to know why there is so much money for weapons and war, but so little for the services that help people live with dignity. This budget also lays out the groundwork for the privatization of Canada’s airports, with $37.6 million allocated to prepare for that process and the expected legislation. Canadians should be very concerned. YVR is one of the best airports in the world. Privatization can mean higher costs for travellers, pressure to cut jobs and working conditions, and public assets being turned into opportunities for private investors to extract profits. Our airports are essential infrastructure. The Prime Minister does not have the mandate to privatize them. They should serve the public interest, not become another vehicle for private wealth accumulation. There is another glaring omission in this budget. There is nothing meaningful to ask the wealthiest Canadians and largest corporations to pay their fair share. Canada’s 40 billionaires increased their collective wealth by $95 billion in 2024-25, a 20% increase, yet this budget offers no new wealth tax and no serious new revenue measures targeting those with the greatest ability to pay. The NDP has called for a wealth tax on very rich Canadians, and that could generate up to $40 billion a year. Think about that. Instead of giving corporations a $36-billion annual mega deduction, we could be asking those who have accumulated extraordinary wealth to contribute more to the country that helped make that wealth possible. Public money should come with public interest conditions, good union jobs, Canadian investment, accountability and a fair return to Canadians. We should be investing in productive infrastructure, in public services and in things that make life better, not simply hoping that corporate tax breaks will trickle down. On climate, the government’s priorities are equally difficult to reconcile. There is approximately $4 billion over 10 years for clean electricity, compared to $55 billion in public financing and investment for a pipeline. Bill C-39 attacks the environment and indigenous and labour rights. We cannot claim to be building a clean energy future while continuing to put enormous public resources behind fossil fuel infrastructure. The Prime Minister is driving up emissions, the same person who used to be the UN special envoy for climate and finance. Canada needs investment in renewable energy, a modern electricity grid and a just transition that puts workers and communities at the centre. The Prime Minister tells us that the masters of our destiny are those who will build Canada’s future, but the masters of our destinies in this budget are not Canadians and their families. They are the CEOs, billionaire and investors invited to the Prime Minister’s investment summit. Brookfield, BlackRock and the big banks will be happy, but Canadians deserve a budget that puts the affordability crisis for families first. Lastly, let me turn to immigration for a brief moment. The government has committed to transitioning 100,000 temporary residents to permanent status, and it is about time. That transition is welcome, and I hope it is only the first step in regularization. I also want to note that outside of the budget, there is a one-time addition to the levels plan of 100,000 PR spots, which will include humanitarian applications for Hong Kong lifeboat people and Ukrainians. I have stood with them to fight for this from day one, and this announcement shows what happens when impacted communities and allies come together to demand fairness. That is justice. That is fairness.

Eric St-Pierre, Honoré-Mercier

Liberal

Linked statement

“The budget spends nearly $600 million for 55,000 new electric vehicle chargers across Canada, including 17,000 in British Columbia. I want the member for Vancouver East to say if she is happy about what this will do for her community.”
Official Hansard

Mr. Speaker, the budget provides financial support of nearly $600 million for electric vehicle chargers, with 55,000 new EV chargers across the country and 17,000 in B.C. I know the members for Portage—Lisgar and Vancouver Quadra are extremely excited about this new program. I wonder if the member for Vancouver East is also excited for this program and the impact it will have in her riding.

Jenny Kwan, Vancouver East

NDP
“The government should not spend $55 billion on a pipeline that harms the climate. It should spend that money on climate action instead, like electric vehicles.”
Official Hansard

Mr. Speaker, I would be very excited, actually, if the Liberal government prioritized a climate strategy instead of building a pipeline, putting $55 billion into it, that will decimate the climate, do little to address the crisis we are faced with and exacerbate the situation we are faced with. Instead of putting $55 billion into a pipeline, we should redirect those resources to climate action, including EV vehicles and other environmental measures that are necessary for our climate.

Dane Lloyd, Parkland

Conservative
“The government's future revenue depends on the success of our oil and gas sector. I want the member to say if she supports the large tax deductions that help this industry.”
Official Hansard

Mr. Speaker, related to my hon. colleague’s last question and her answer, I wonder if the member is aware of the value of the productivity mega tax deduction for Canada’s oil and gas sector. Much of the revenue the government has projected to raise in the next few years relies on the success of our oil and gas sector. I wonder if the member can tell us how excited she is about the productivity mega tax deduction benefits for the Canadian oil and gas sector.

Jenny Kwan, Vancouver East

NDP
“Canada is not going to meet its environmental targets. This bill rushes past environmental protections and Indigenous rights. I want to know why the Prime Minister is not keeping his promises on the environment.”
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Official Hansard

Mr. Speaker, I just came back from COP17, which was a UN conference on biodiversity, and guess what. Canada is not making its targets. The 30 by 30 goals are not going to happen under the current situation, and that is not considering Bill C-39 and the ramming through of environmental strategies, environmental protections, indigenous rights and so on. If we are going to talk about protecting the environment, I will ask the member and all members of the House, including those in the government, this question: Where is the Prime Minister who was the climate envoy at the UN and who once upon a time talked about the importance of finance and marrying the economy to the environment?

Elizabeth May, Saanich—Gulf Islands

Green
“The government approved the Pacific link pipeline without studying its costs and benefits. Taxpayers are paying for it. I want to know if the member is as concerned about this as I am.”
Official Hansard

Mr. Speaker, I am grateful to my hon. colleague from Vancouver East. She raised many good points. One thing I was surprised by was from earlier today. One of the Liberals who were speaking to the budget said that it was really committed to robust cost-benefit analysis. However, there is no cost-benefit analysis anywhere, neither robust nor otherwise, for the proposed and now approved Pacific link pipeline. The government is moving ahead with it as a major project of “national interest” with no cost-benefit analysis. I wonder if my hon. colleague is as troubled by that as I am, since we are paying for it.

Jenny Kwan, Vancouver East

NDP
“The government did not study the costs and benefits of this pipeline. It also does not make businesses study their impact on the environment, even though fewer than 1% do so on their own. The government must require these studies before building a pipeline that will destroy the environment.”
Official Hansard

Mr. Speaker, I thank my good colleague for her advocacy, always, for the environment and the people. She is exactly right. There is no cost-benefit analysis. The other thing that has been pointed out is that businesses are not required to do an impact assessment on the environment with their businesses. Less than 1% of businesses actually do that work. I asked the minister directly at COP17 whether the Liberal government will impose this regulatory requirement so that we know what the impacts are. Not only is the government not doing a cost-benefit analysis, but it is not making businesses do impact assessments, which is absolutely essential when the government wants to build a pipeline that will absolutely decimate our environment.

Patrick Bonin, Repentigny

Bloc Québécois
“The government says it has a plan for clean electricity, but it only set aside $2.4 billion for it by 2030. It is also spending $22.8 million to weaken its own clean electricity rules to help gas companies. I want to know what the member thinks about this.”
Official Hansard

Mr. Speaker, I thank my colleague for her excellent speech. I would like to know what she thinks about the fact that the government is claiming that it has an electrification strategy when it has actually only allocated $2.4 billion between now and 2030 for the clean electricity and clean technology investment tax credits. The government is weakening its own clean electricity regulations. It is going to cost the government $22.8 million to weaken a regulation that we have already paid to implement, all to please the gas companies and generate more electricity from natural gas.

Jenny Kwan, Vancouver East

NDP
“The Prime Minister and the government are spending $55 billion on a pipeline that will hurt the environment. They are spending far more money on big oil than on climate plans, and they are moving backward on their environmental goals.”
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Official Hansard

Mr. Speaker, I thank my good colleague for his work and advocacy. He is exactly spot on. The Prime Minister and the Liberal government will not hesitate one bit in dumping $55 billion into a pipeline that will decimate our environment. What we are seeing right now is the backsliding of a Liberal government on Canada’s environmental strategy. That is clear as day. The investment that it put into climate initiatives is a drop in the bucket when we compare it to the big oil investments that the Prime Minister is all too eager to dump—

Jacques Gourde, Lévis—Lotbinière

Conservative
“I do not support this budget. It runs huge deficits, spends billions on debt interest, and does not actually lower grocery prices. It also pushes an expensive train project that could take people's land without proving it is worth the cost, and it does nothing to cut red tape for small businesses.”
Official Hansard

Mr. Speaker, I will be sharing my time with the member for Calgary Centre. When we look at the budget this Liberal government is presenting, we have to wonder what happened to all of its big promises. The government promised an ambitious budget. It talked about growth, productivity, streamlining and a new way of doing things. Rhetoric aside, once one has actually read the budget and looked at the numbers, what is left? Not much. This budget is all sizzle and no steak. The truth is that Canadians do not need big announcements. They need to be able to afford their groceries, mortgage, rent and bills at the end of the month. They want to know that their hard-earned money is being put to good use, but this budget is not very reassuring for them. Let me start with public finances. The government is patting itself on the back for getting additional revenue, but we need to look at where a lot of that money is coming from. One of the reasons government revenues are going up is because prices are going up, because inflation is driving up nominal revenues and tax revenues. Although the government is taking in more money, Canadian families are paying more to fill their grocery carts. It is easy for the government to pat itself on the back for this additional revenue when it is Canadians who are the ones paying the inflation bill. The Liberal government seems to be forgetting one thing: When the price of gas, bread, meat or housing goes up, it is not good news for families. It means less money in their pockets. Inflation is the worst form of taxation, because it takes what little the middle class has left and makes the rich richer. Despite this additional revenue, the Liberals continue to spend recklessly. Let us look at the numbers. The projected deficit for this year is $62.3 billion. In five years, in 2030-31, it will still be $52.9 billion, according to estimates. That is $288.7 billion in accumulated deficits over five years for government operations. That is a mountain of debt that we are leaving to our children and grandchildren, and that is not all. This year, the government will spend $60.2 billion on interest payments on the debt. In five years, that amount will have grown to $85.5 billion, meaning $25.3 billion more per year. That is more than all the revenue collected from the GST in Canada. That is money none of us will never see again, unless we happen to be among the Prime Minister’s banker buddies or other friends. Imagine what that money could do for our hospitals, schools, infrastructure and families. Unfortunately, it is going toward interest payments. We cannot build a country by working only to pay interest on the debt. It is all well and good for the government to talk about a balanced operating budget, but the overall budget is not balanced. The deficit is still there, year after year. It is a structural deficit. We will not become masters of our destiny by mortgaging our grandchildren’s future. Canadians are trapped by Liberal debt. Now let us talk about the cost of living. The Liberals are announcing a supplement to the Canada groceries and essentials benefit that will provide up to $339 for a single person and $679 for a family of four. It is all well and good to send a cheque, but does that lower the cost of the grocery basket? Does it lower food prices? The answer is no. A one-time cheque does not solve the problem. It helps some families for a while, but it does not make the cost of living go away. It does not address the root cause of the problem. Instead of dealing with problems in the here and now, the Liberals tend to cut a cheque and kick the problems down the road. The Liberals hand out cheques to help Canadians pay prices they cannot bring down. Families want to be able to live on their wages, just as businesses want to make a living by selling their products, not by relying on subsidies. No one wants to have to wait around for a government cheque just to make ends meet. I want to turn now to the Alto project, the much-touted high-speed rail link. In the budget, the Liberals present Alto as a major driver of economic growth. I have a very simple question: Where are the studies proving that? Where is the evidence that this project will be profitable? Which independent study proves it? Where is the proof that taxpayers will recoup their investment? Where are the guarantees that costs will not spiral out of control? The Parliamentary Budget Officer has already estimated construction costs at between $75 billion and $113 billion. Those are staggering figures. I doubt that those amounts are fully reflected in the current budget. This is taxpayers’ money: money from workers, farmers, small business owners and families who pay their taxes. The government already seems eager to fast-track the project. Annex 3 of the budget states: In Budget 2026, the government proposes to introduce new legislation that will support accelerating the construction of Alto High-Speed Rail. Legislation will streamline expropriation activities and enable early preconstruction work. The government is going to accelerate the expropriation process. Something is really off. The government really wants to accelerate expropriations and start pre-construction work. It wants to move the project forward. It is not even hiding it. However, serious questions remain unanswered. Is it cost-effective? Do Canadians really need it? Have the economic benefits been confirmed as announced? The government wants to accelerate the process, but it has yet to answer all of these questions. In the meantime, farmers and property owners are in limbo, unsure whether the project could affect their land and property. I am thinking especially of farmers in the Mirabel area, who already survived one expropriation for the former airport. Today, they are in limbo once again. These people deserve answers. They deserve to be heard. Now let us talk about bureaucracy. That is probably where the expectations were the highest and the disappointment is the greatest. The Minister of Finance set the bar very high. He talked about streamlining administrative procedures. Small and medium-sized businesses were expecting concrete action. Business owners on the ground do not need to be told what bureaucracy is. They experience it every day. Owners of garages, farms, restaurants and construction firms want to keep their businesses running. They spend too much of their days filling out forms, meeting the requirements of various government departments and trying to understand rules that keep changing. They want to run a business, not become experts in federal red tape. What does the budget actually offer them? It offers them a tax deduction for investments that was previously announced. That is all. After the Minister of Finance set expectations so high, where is the big plan to streamline administrative procedures? Where are the concrete measures to cut red tape? Where is the plan to eliminate redundancies and unnecessary requirements? I will say it again: This budget is all sizzle and no steak. The government announced major changes. Canadians were promised a real transformation. In the end, business owners are finding that there are very few new measures. We cannot ask businesses to be more productive while also forcing them to waste hours and days dealing with the federal bureaucracy. We need to trust them. We need to give them space to work and create wealth. When we put all these things together, we can see why this budget is so underwhelming. We have a government that continues to rack up deficits. We have an interest bill that will be $25.3 billion a year higher by 2030-31. We have families who are seeing their purchasing power decline and who are being offered temporary cheques instead of lasting solutions. We have a high-speed project with a price tag in the tens of billions of dollars but whose benefits have yet to be proven and for which the government already wants to speed up expropriations. We have provinces calling for more resources to care for their citizens. Canadians work hard. They get up early in the morning. They pay their taxes. They deserve better than promises and announcements. They deserve a government that spends prudently, respects taxpayer dollars and tackles the real issues. With this budget, unfortunately, Canadians may once again be paying a lot to get very little in return.

Caroline Desrochers, Parliamentary Secretary to the Minister of Housing and Infrastructure

Liberal
“Our budget invests $45 billion to build more housing and aims to end homelessness in 10 years. I want the member to agree that spending money on housing helps Canadians and Quebeckers.”
Official Hansard

Mr. Speaker, my colleague talked about affordability. I know that he is keenly aware that housing is the number one expense for a household. Budget 2026 invests $45 billion in improving the housing supply to tackle all the housing-related issues. This includes recapitalizing Build Canada Homes to build even more affordable housing. We are maintaining the existing programs that support tens of thousands of projects currently under construction, such as the CMHC programs, the infrastructure investments to help build more housing, and the red tape reduction measures. Obviously, the centrepiece of this budget is the investment to end homelessness in 10 years. I wonder if my colleague can confirm that investing in housing is clearly good for Canadians and good for Quebeckers.

Jacques Gourde, Lévis—Lotbinière

Conservative
“I oppose this budget. The government is using it to take too much money from Canadians.”
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Official Hansard

Mr. Speaker, I hear my colleague promoting the Liberal budget. Yesterday, I heard the Minister of Finance promoting his budget as energetically as a 1960s vacuum cleaner salesman. Remember the big Electrolux vacuum cleaner that was supposed to suck up all the dust? With this budget, the government is sucking up all the money out of Canadians’ wallets. The Liberals certainly have convinced us that they are the masters of our destiny.

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