Local MPs raise concerns about deficit spendingin budget

Jeff Helsdon, Editor

Local MPs noted the recent federal budget lacked cost-of-living relief while pushing debt to record levels.

Announced on Nov. 5, the budget titled “Masters of Our Destiny” brought a variety of changes through $542 billion in total spending (an 8.9 per cent increase), and a deficit of $62.3 billion. The deficit increased from $39.3 billion in 2025-26. All deficits are added to the long-term debt, on which interest is paid.

Other budget highlights were:

• A change in the tax filing date to May 15. This is an extension for individuals, but a shorter deadline for the self-employed.

• Proposing to eliminate the need to transfer RRSPs into RRIFs at the age of 71.

• A 50 per cent top-up to the Canada Groceries and Essentials Benefit

• Spending $29 billion over 10 years to eliminate homelessness.

• Increasing defence spending.

Oxford MP Arpan Khanna said Canadians were hoping for some relief when it comes to the cost of living, including the price at the pumps, and the cost of housing and food, something he said didn’t happen, despite an increase in deficit spending.

“That means more taxes and debt interest payments in the future. Carney talks about being a great fiscal manager but he’s blown by his own fiscal anchors,” he said.

He added the increased deficit will add $6,000 in debt for the average family of four, and the biggest line in the budget is debt interest payments.

“We’re paying more on that than we are for health care payments to the provinces. When people ask me why it’s important to have balanced budgets and strong fiscal management, I tell them it’s because then we can invest in things that really matter to Canadians.”

Norfolk MP Leslyn Lewis was concerned about the cost of the debt for future generations, and pointed out by 2031, the government will spend $17 billion more servicing its debt than it provides in health care transfers to provinces and territories.

“I'm concerned that no matter how the prime minister divides the numbers and changes the accounting framework, Canadians will ultimately pay the bill through higher costs, inflation and taxes,” she said.

Lewis also hoped for relief at the gas pumps, saying, “In a rural region where people depend on their vehicles to get to work, take their children to appointments and access basic services, fuel costs have a particularly significant impact.”

Elgin-St. Thomas-London South MP Andrew Lawton agreed increased debt is impacting affordability.

“This growing debt burden has serious consequences for the number one issue affecting our local communities: affordability,” he said. “While Canadians continue to struggle with the rising cost of groceries, housing, and transportation, the government's reckless borrowing today means even higher costs tomorrow.”

Khanna explained that when the country spends $80 billion to pay interest to foreign bondholders every year, that money would be better spent in local communities on new hospitals, doctors, and rec centers, but we aren’t seeing that. He added that other Conservative asks were ignored.

“We asked the government to take taxes off fuel. They didn’t do that. We talked about cutting waste. There is $150 billion worth of waste they could have cut from the number of consultants, foreign aid, and other problematic spending the Liberals have had, yet they kept all of that in place.”

Khanna said recent figures show 2.5 million Canadians are being forced to visit food banks monthly, while many parents are reducing portion sizes or skipping meals so their kids can eat. He said that tells people everything they need to know about Canada’s economy.

“The other thing the budget released was immigration numbers. Carney promised he would get the file under control, but he’s going to add record numbers going forward. Canadians were looking for this budget to be a strong plan to return some prosperity to our country, but unfortunately, they missed the mark.”

Lawton said new immigrants could reach 654,000 in one year, “despite ongoing housing shortages, rising unemployment, and increasing pressure on healthcare and public services.”

Lewis was disappointed there was nothing in the federal budget for the agriculture community.

“Farmers and small businesses need policies that encourage investment, succession planning and growth, not additional costs and barriers,” she said.

- With notes from Lee Griffi