Roundup: A more modest budget than feared

Posted on by

We are now somewhere around day forty-four of Russia’s invasion of Ukraine, and Russia’s retreat from Chernihiv has shown much more destruction in its wake. Given that Russia is re-positioning to the Donbas region, Ukraine is trying to maintain humanitarian corridors from the area, while pleading with NATO and other countries for yet more weapons to fight the Russian invaders. Meanwhile, RCMP officers in Canada are reaching out to Ukrainians who have made it here to gather evidence of Russian war crimes, so that it can be forwarded to The Hauge.

As for the budget, it was not the orgy of NDP-led spending that Candice Bergen and others had been hinting at, though it did increase spending somewhat, but that was largely offset by higher revenues thanks to the booming economy. The deficit is reducing rapidly, as is the debt-to-GDP ratio, which is the “fiscal anchor.” In fact, Bergen’s reaction speech was pretty much drafted with a very different budget in mind, and when called on this, she prevaricated. Jagmeet Singh, predictably, said there was enough in there for him to support (checklist here), but he still put on a show about criticising things he didn’t like, and the environmental provisions in particular.

https://twitter.com/AdamScotti/status/1512237421513125897

Some specifics:

  • Here are the $10 billion in housing measures the government is proposing, though some of those measures will do nothing for affordability.
  • The corporate tax rate is going up, and there is a special surcharge being levied against banks and insurance companies, as promised.
  • There is money allocated for dental care, but no details on the implementation mechanism, which is very important to have.
  • The $8 billion over five years in new defence spending won’t get us to the NATO two-percent goal, but a needed defence review is included.
  • There is some $500 million earmarked for more military aid for Ukraine, plus another $1 billion in loans to prop up their economy.
  • There is new money for cyber-security, much of it going to CSE.
  • Some $15 billion is earmarked for the creation of two new arms-length bodies to help with medium-and-long term growth.
  • There is $4.3 billion over seven years for Indigenous housing.
  • As expected, the tax credit for carbon capture and storage projects is drawing heat from environmental groups.
  • There is $3.7 million being earmarked for mental health services for Black civil servants (as they have a class action lawsuit underway).
  • There is some more money for arts organizations including the National Arts Centre.
  • Both the National Post and The Canadian Press have lists of smaller items in the budget that may have escape notice.

Good reads:

  • Justin Trudeau has been making calls to other world leaders who have been hesitating about joining in with the sanctions on Russia.
  • Two new reports are showing that as much as 26 percent of price increases are more likely to be corporations padding their bottom line than actual input costs.
  • Three University of Toronto professors are asking Pascale St-Onge to look into Own the Podium after ore allegations of athlete mistreatment have emerged.
  • Millions of dollars collected for the Ottawa occupation remain unaccounted for, and I am shocked—shocked!—to find that there has been grift happening.
  • Kathleen Wynne delivered her farewell speech at Queen’s Park yesterday.
  • Brian Jean has been sworn in as a UCP MLA, so that will make things very interesting as he is openly looking to oust Jason Kenney.
  • John Michael McGrath has serious doubts about the promises to ban foreign homebuyers.
  • Heather Scoffield sees a number of new experiments in the budget as the government quietly retires their Build Back Better slogans.
  • Susan Delacourt likens the budget to a bit of balm to some of the anxieties out there, not the least of which for those blue Liberals fearing NDP profligacy.

Odds and ends:

Want more Routine Proceedings? Become a patron and get exclusive new content.