Liberal, the governing party of Canada, has pledged billions of dollars in new investments in light of the federal election, as the party seeks to amass the number of supporters amid a cutthroat race with the Conservatives.
Justin Trudeau unveiled the plan of 78 billion Canadian dollars in new spending across five years with a primary focus on health care.
The investments would be partially offset by more than 25 billion Canadian dollars ($19.8bn) in new revenue, mostly from a higher tax on profits of banks and insurers and fighting tax evasion, the party said.
“We have a plan to move forward for everyone on health, on housing, on child care, on climate,” Trudeau said during the unveiling of the plan.
The investment will be spread out across five years, from 2021 to 2026 in addition to the 101 billion Canadian dollars ($81bn) in extra spending across three years passed in a budget earlier this year.
New tax-revenue measures, including a 3 per cent tax on bank profits and a 15 per cent minimum rate on high earners, would bring in around $25.5 billion over five years.
Even with the new spending, Trudeau’s party says government debt will decline, citing Parliamentary Budget Office tax-revenue figures from August that are much stronger than what was projected by Finance Minister Chrystia Freeland in April.
The platform estimates the federal deficit would decline from $156.9-billion this year to $32-billion in 2025-26 but offers no timeline for erasing the deficit entirely. Those annual deficits would be $14-billion higher per year on average than the projected pre-election deficit forecast released by the Parliamentary Budget Officer (PBO) in August.
On the revenue side, the platform proposes a minimum 15-per-cent tax on high earners so that deductions and tax credits can’t reduce their tax obligations below that threshold. That would be in addition to a 3-per-cent surtax on banks and insurance companies with profits over $1-billion and a temporary recovery dividend on those same firms. The platform also co
According to recent polls conducted by Leger, the Conservative Party garnered 34% of votes and stood at first place in the chart whereas the Liberal got 30% of the votes.