OTTAWA — Conservative members of the Standing Committee on Finance have tabled a supplementary, dissenting report on the committee’s pre-budget consultations, telegraphing what their party’s likely position on the upcoming budget will be.
The report acknowledges Canada’s current economic situation justifies some stimulus spending, but advises the government to target that spending to ‘depressed regions’.
“…Experts are not predicting a major downturn or recession,” the report states. “The problems remain isolated to certain regions, notably Alberta, Saskatchewan and parts of Eastern Canada that have been hard by low oil prices.”
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Conservative members of the committee do admit in the report that federal investment in infrastructure could help stimulate growth, but want that spending targeted as well.
“The government must choose projects that are ‘shovel smart’, not simply ‘shovel ready’,” they write. “This means prioritizing projects proven to boost private sector productivity and enable Canadian exporters to move their products to global markets.”
The report also warns against any new taxes and recommends the Liberals stick with their campaign promise to limit the deficit to $10 billion.
Earlier this month, Finance Minister Bill Morneau released new figures which show this year’s deficit will be at least $18 billion, due to slower than expected growth and persistently low oil prices.
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At the time, Morneau promised there wouldn’t be any new taxes in the budget, which is slated to be tabled on March 22.
Members of the committee heard from 92 witnesses over the course of four days in February. The committee’s entire report can be found here.
The New Democrats also tabled their own supplementary report.
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