Budget Day was a giant production, for a variety of reasons yesterday, starting with the long-awaited showdown at the Commons justice committee. Given that the Liberal members had released that letter the night before, we knew that they were going to wrap it all up – without a report, I might add – and on their way in this morning, they handed to the media a copy of the motion they were planning to move to start a new study on hate crimes (because this increasingly seems like what the Liberals want to fight the next election on). Well, this caused the opposition to storm out because that motion was supposed to be in camera (and we all know how much they’ve respected the notion that committee business be handled in camera of late), and then they came back and had their meeting, and the committee (read: Liberal majority) decided to end the study of the Double-Hyphen Affair.
Here is what the Liberals say they want to discuss instead of #SNCLavalin. #cdnpoli pic.twitter.com/bcPgb1RH5X
— Mercedes Stephenson (@MercedesGlobal) March 19, 2019
This set the Conservatives off, and they warned that they would ensure that the budget was going to be delayed, mark their words, and they set up all manner of procedural trickery in which to do so. Except that the Liberals outplayed them, tabled the document just before 4 PM, right before the vote was being called that was intending to delay the budget speech, and then Bill Morneau marched out to the Foyer to start talking to all of the assembled media outlets and get his message out, while the opposition stayed in the Chamber to carry on their procedural shenanigans, to the point where they essentially held themselves hostage. When Morneau was able to give his speech, well over an hour later, the Conservatives did ensure that he was drowned out with noise so that he couldn’t be heard and that no clips were able to be captured for news media, but given how Morneau was doing the media rounds and Scheer wasn’t – indeed, after the fact, when he and his caucus marched out to the Foyer, they denounced the budget as a distraction from the Double-Hyphen Affair, and had nary a substantive comment on it. (Jagmeet Singh, incidentally, had the usual NDP talking points about how it wasn’t enough, but couldn’t really respond when pressed about specifics or implementation of their vision). So, take it for what you will, I’m not sure how well the Conservatives came across in the end yesterday, especially as Scheer walked right into Trudeau’s very obvious trap that about the Conservatives not wanting to talk about the economy.
Speaking of the budget, it was far more stimulus-heavy than I would have expected, but then again, targeting both seniors and millennials, and going some distance in doing more for skills training, though their housing affordability measures were weak sauce and will likely do nothing about the supply side of the issue (especially as they keep the focus on buying a home rather than simply having affordable housing writ large).
Although I should note that I think the opposition has a 100 percent legitimate point of privilege re: Liberal MPs handing out motions to be presented during in camera sessions.
— kady o'malley (@kady) March 19, 2019
With that in mind:
- The deficit will grow this year before shrinking again, but there is no path back to balance in the immediate future. (Debt-to-GDP continues to decline).
- Here are the highlights for five key demographics.
- Here are 23 key measures in the budget.
- There was the start of Pharmacare, beginning with the Canadian Drug Agency to facilitate bulk buying – next steps coming with the Hoskins report.
- Municipalities got a chunk of new funding (with shots taken at premiers who are holding up infrastructure agreements).
- There are more funds earmarked for Indigenous services, not only with water but also child and family services.
- The budget also outlines a plan to start targeting stock options for taxation as another way of soaking the wealthy.
- There is a plan to start taxing cannabis products by the potency of their THC.
- The budget has money to help veterans transition to civilian life, but doesn’t seem to have anything to deal with the disability backlog.
- There was a big commitment on rural broadband, but implementation details remain fuzzy.
- Here are ten things that may slip under the radar.
- Here’s a fact-check of Morneau’s speech (but the sources could have been better selected).
In budget hot takes, Chris Selley calls it the budget of a government that is no longer selling utopia – just buying votes, whereas Alan Freeman simply calls it a “do no harm” budget. John Geddes details the spending surprises in the document, while Andrew Coyne grouses about the how there seems to be more concern over the quantity of spending over the quality of it, given there is nothing in the budget about things like productivity. Heather Scoffield takes note of the Liberals’ attempt to frame the budget as a response to anxieties – economic or otherwise – that Canadians are feeling. Kevin Carmichael cautions that there budget leaves very little wiggle room for economic downturns, given how sluggish growth already is. Paul Wells notes the sprinkling of spending throughout the document, and the big bomb for political journalists in there. There are also worthwhile threads from economist Kevin Milligan here and here.