The federal Liberals are signalling they plan to spend their way through the October election, unveiling a budget today that contains a 20-billion-dollar windfall over five years.
The government’s fiscal blueprint spells out plans to spend it all.

John Wonfor is with BDO Canada.

He says the deficit will hit 19.8 billion in the next fiscal year but there doesn’t appear to be a plan past 2024.

“The key is there’s going to continue to be a deficit and the government has no language after 2024. The lack of a long term plan to get back to a balanced budget is concerning,” he says.

Among its measures, the budget takes first steps toward a national pharmacare plan by creating a new Canadian Drug Agency aimed at reducing the cost of drugs.

“Their additional mandate is looking at the cost of prescription drugs and seeing how they can help negotiate better prices for the existing purchasers of pharmaceuticals,” he says.

He says there’s a big focus for people who need training skills through the Canada Training Benefit.

“This has two components to it the Canada Training Credit which is a refundable tax credit which the government will contribute to. This will allow you to get a refundable tax credit when you go back to school or take a training program,” he says.

The other component is receiving employment insurance funds if you’re going back for additional training.

He says there’s also a focus for first time home buyers.

Wonfor says there’s a home buyers incentive for first timers which is an interest free loan in addition to your mortgage.

“The other relief is they’ve expanded the amount of money you can withdraw from a home buyers plan. It is a way to borrow money from your RRSP to help with a home purchase,” he says.

(with files from Canadian Press)

Filed under: 2019 budget, Bill Morneau