Last week, Liberal leadership candidate Mark Carney proposed a major shift in how the federal budget is reported. Instead of presenting a consolidated financial picture, he suggests separating operating expenses from capital investments. His rationale remains vague, but he frames it as a way to “spend less and invest more.” The proposal, however, raises serious concerns.
Under current budget rules, capital expenditures—such as infrastructure projects—are already accounted for over time rather than appearing as lump-sum deficits. For example, the government’s $34-billion cost of expanding the Trans Mountain Pipeline does not immediately impact the federal deficit.
Nor should it ...
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