Justin Trudeau

Justin Trudeau defends larger deficit for federal budget 2016

Prime Minister Justin Trudeau is defending his government’s choice to make sure that it provides a much higher than promised $29.4-billion deficit in the coming fiscal year, in addition to that the funding plan for First Nations.

The bigger deficit is the result of an increasingly slumping economy, Trudeau said. However the Canadian nominal GDP is $1.573 Trillion with a $43,935 per capita. The deficit will be increasingly large for the country’s economy in regards to the money that will be used to fund.

Trudeau says that he promises about $10 billion in new investment and that they are bringing forward about $11 billion of new investment which he told that to Robyn Bresnahan, host of CBC Radio’s Ottawa Morning, on Wednesday.

The Liberals are looking to invest versus cutting in order to grow the country’s economy in every way possible to prepare for the country’s future. Trudeau made a promise that was to invest in the future of the country. That’s what Canadians told him the Canadian people needed and that he was going to do it responsibly and that’s exactly what they want to do.

Trudeau said that they were being absolutely open and transparent with Canadians the way they  promised to be, not to try and force to country back to budget balance to keep election promise, but to respond to what the economy actually needs.

As per The First Nations Funding it was asked to quickly respond to concerns the budget doesn’t do enough in the short term to address funding inequities for First Nations, and in response to that Trudeau says that relationships have to be rebuilt to allow First Nations to be leaders on the issue.

Approximately $8.4 billion in funding for First Nations is earmarked for the coming five years worth of spending. According to the president of the First Nations Child and Family Caring Society, Cindy Blackstock says that puts the funding at risk and does not address the distance of fairness faced by kids on reserve.

She stated that she thinks people need to look closely at what they’re actually spending and when, she said. She said that the biggest investments on the First Nations file are after the next election.

Trudeau said Wednesday it will take more than money to address inequities properly.

“The fact is, we’re on a path right now to do this responsibly and realistically. Because as we understand, the challenge isn’t only a question of money. The question is around governance, around building the right partnerships so First Nations can lead on First Nations education. That was where Mr. Harper had failed a few years ago.

“We have to make sure that it’s done right, and that means building a proper partnership with indigenous communities that haven’t led on this. They’ve been told by the government that this is the money you have, this is how you’re going to spend it,” he said.

“We need to renew that relationship in a respectful way, and that’s why we’re getting to work with people … properly.”

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