Finance Minister Bill Morneau rises during Question Period in the House of Commons in Ottawa on May 26, 2020. Opposition parties have laid out their demands as the federal Liberal government prepares to update Canadians on the state of the economy after four months of COVID-19. Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March. The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit, but opposition parties want more than just numbers. THE CANADIAN PRESS/Adrian Wyld

Finance Minister Bill Morneau rises during Question Period in the House of Commons in Ottawa on May 26, 2020. Opposition parties have laid out their demands as the federal Liberal government prepares to update Canadians on the state of the economy after four months of COVID-19. Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March. The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit, but opposition parties want more than just numbers. THE CANADIAN PRESS/Adrian Wyld

Tories, NDP at odds over federal spending as Liberals prepare fiscal snapshot

Federal figures last week showed direct government spending on COVID-19 supports at just over $174 billion

Opposition parties have laid out their demands for the federal Liberal government as Ottawa prepares to update Canadians on the country’s finances after four months of COVID-19 — and where it expects the economy to head for the rest of the year.

Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March, forcing provinces into lockdown and the Liberal government to start doling out billions in aid in lieu of a federal budget.

The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit.

But the Conservatives and NDP made clear Sunday that they want more than just numbers: they want action. That includes additions, changes and expansions to federal COVID-19 support programs along with more accountability and transparency.

Yet while the Conservatives also called for the Liberals to produce a plan to get government spending under control, the NDP was warning against any premature efforts to cut federal assistance.

Conservative finance critic Pierre Poilievre on Sunday blasted the Liberals’ handling of the economy while small business critic James Cumming underscored the importance of accurate fiscal projections and planning from the government for Canadian business.

“What business needs as they start to open up is some level of certainty,” Cumming said during a news conference on Parliament Hill.

“They need to understand what the government’s finances are to understand how long these programs are going to last to assist them and when they will be starting to phase out. And a lot of that has a lot to do with the financial health of the government.”

Federal figures last week showed direct government spending on COVID-19 supports at just over $174 billion, which included another increase to the budget for the Canada Emergency Response Benefit. That is now expected to cost $80 billion as eligibility increased to 24 from 16 weeks.

At the same time, Statistics Canada last week reported that the Canadian economy shrank 11.6 per cent in April — the largest monthly drop on record. That follows a 7.5 contraction in gross domestic product in March. Both are expected to hit Ottawa’s bottom line through lost tax revenue.

Parliamentary budget officer Yves Giroux has previously predicted that the increased spending and lost revenue could combine to see the federal deficit top $250 million this year.

With COVID-19 in retreat across most of the country — at least for the moment — Poilievre said it was time for the Liberals to produce a plan to start getting what he described as Ottawa’s “fiscal mess” under control.

That includes weaning Canadians off the CERB and getting them back to work by phasing out the $2,000-per-month benefit based on how much they earn rather than simply cutting off anyone who earns more than $1,000 in a month.

“The government is punishing Canadians for working,” Poilievre said. “We think that people on it should be rewarded when they make the courageous decision to go back to work and make a wage.”

Poilievre, who also demanded more money for the federal auditor general’s office to better scrutinize government spending during the pandemic, dismissed suggestions that Ottawa needs to keep the taps wide open to stimulate the economy as it starts to reopen.

He instead took aim at various Liberal policies and regulations around natural-resource development, particularly in Alberta and Saskatchewan, as having stunted economic growth and prosperity in Canada.

“Removing these government obstacles is the way you unleash growth and create a cornucopia of opportunity for our workers and businesses that will generate the wealth,” he said. “More deficit spending does not create jobs and growth.”

Yet NDP finance critic Peter Julian warned against any early cut to COVID-19 benefits and support and instead repeated longstanding calls from his party for the federal government to crack down on tax havens and tax wealthy Canadians and businesses to pay for the federal aid.

“There’s been a call for … dealing with the economic and financial fallout of the pandemic through cutting services,” Julian said in an interview.

“We actually believe that now is the time to handle the pandemic from the revenue side. We believe in tackling the tax haven problem, which is more acute in Canada than any other country. And to put in place a wealth tax.”

The NDP is also pressing for the Liberals to ease the criteria for businesses to access the federal wage subsidy, which covers up to 75 per cent of employees’ salaries, to encourage more hiring. And it wants the government to provide promised support for Canadians living with disabilities.

While the fiscal update will be presented in the House of Commons on Wednesday, Julian said the report itself will not require a vote. However, he suggested NDP support for future legislative proposals from the government could be contingent on the Liberals accepting the NDP’s requests.

The Liberals have leaned heavily on the NDP since being elected to a minority government in October. That included securing NDP support for several confidence motions in the winter and spring that, if defeated, could have triggered a federal election.

Lee Berthiaume, The Canadian Press


Like us on Facebook and follow us on Twitter.

Conservative Party of CanadaLiberalsndp

Just Posted

President of the Tahltan Central Government, Chad Norman Day, surveys Tahltan territory by helicopter in this July 2019 handout photo. The Tahltan Nation and the British Columbia government have struck what officials say is a historic agreement for shared decision-making for the nation’s territory in northwestern B.C., a hot spot for mineral exploration. Day says the deal shows they are “getting closer and closer to a true nation-to-nation relationship.” THE CANADIAN PRESS/HO - Tahltan Central Government
Tahltan Nation, B.C. government sign agreement for shared decision-making

Deal commits the province and the northwest B.C. nation to developing a land-use plan

Hours of practice each day on the part of dancer Braya Kluss keeps her at a high performance level, someting reflected in the competitions she has won. (Submitted Photo)
Remote Tahltan community faces uncertainty with no ‘real’ timeline on Telegraph Creek Road

Provincial transportation ministry says the timeline for road repairs is ‘weather dependent’

Shown is a T-6 Harvard flown by Bud Granley, who has performed at the Vanderhoof Airshow “more times than any other performer,” said Anne Stevens. (Anne Stevens - Vanderhoof International Airshow Society)
Vanderhoof International Airshow a no-go for 2021

Airport open day planned for September

Five rehabilitated grizzly bears were released this month into the Bella Coola area. The Northern Lights Wildlife Society will also be delivering 36 black bears to areas across the province where they were previously found. “They’re ready to go and they’re already trying to get out,” says Angelika Langen. “We feel good when we can make that possible and they don’t have to stay behind fences for the rest of their lives.” (Northern Lights Wildlife Society Facebook photo)
The train station in Smithers pulls into view in a 1959 video of a train trip from Vernon to Prince Rupert. (Screen shot)
VIDEO: Rare footage of Smithers in 1959 featured in train tour video

8mm film converted to video shows Vernon to Prince Rupert by train and Rupert to Vancouver by ship

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

Port Alberni court house (Alberni Valley News)
Inquest set into 2016 death of B.C. teen after a day spent in police custody

18-year-old Jocelyn George died of heart failure in hospital after spending time in jail cell

Children’s shoes and flowers are shown after being placed outside the Ontario legislature in Toronto on Monday, May 31, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario commits $10 million to investigate burial sites at residential schools

Truth and Reconciliation Commission identified 12 locations of unmarked burial sites in Ontario

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Singer-songwriter Jann Arden is pictured with a draft horse. (Canadian Horse Defence Coalition)
Jann Arden backs petition to stop ‘appalling’ live horse export, slaughter

June 14 is the International Day to End Live Export of Animals

Two hundred and fifteen lights are placed on the lawn outside the Residential School in Kamloops, B.C., Saturday, June, 13, 2021. The remains of 215 children were discovered buried near the former Kamloops Indian Residential School earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Days after Kamloops remains discovery, Tk’emlups families gather to unite, move ahead

‘We have to work together because this is going to be setting a precedent for the rest of the country’

In this Saturday, May 29, 2021, file photo, people crowd the Santa Monica Pier in Santa Monica, Calif. California, the first state in America to put in place a coronavirus lockdown, is now turning a page on the pandemic. Most of California’s coronavirus restrictions will disappear Tuesday, June 15, 2021. (AP Photo/Damian Dovarganes, File)
With COVID tamed, it’s a ‘grand reopening’ in California

No more state rules on social distancing, no more limits on capacity, no more mandatory masks

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

Most Read