‘Mortgaging decisions into the future’: NS reacts to budget 2016

The increase in federal spending will hurt taxpayers in Atlantic Canada, according to the Canadian Taxpayers Federation.

Spokesperson Kevin Lacey said the size of the deficit the government plans to run is especially troubling.

“When deficits are this big you are mortgaging decisions into the future. We have to pay interest on that debt which means it’s going to hamper our ability to pay for things like hospitals, roads or lower taxes,” Lacey told Global News.

Tweet This Click to share quote on Twitter: "When deficits are this big you are mortgaging decisions into the future. We have to pay interest on that debt which means it's going to hamper our ability to pay for things like hospitals, roads or lower taxes," Lacey told Global News.

READ MORE: Federal budget will help boost NS economy: Premier McNeil

The Liberals introduced a new child tax benefit and axed the Tories universal childcare benefit, the outcome is that two income families who didn’t take advantage of the Conservative’s income splitting policy will get some tax relief.

Lacey said this means some families will see a boost to their bottom line, but others won’t see a real change.

“You’re basically treading water, your taxes will be about the same,” he said.

‘The good, the bad, and the ugly budget’

In the meantime, the Halifax Chamber of Commerce says the budget takes a step forward on issues like infrastructure spending and public transit, but it also broke key election promises.

“I’d call the budget the good, the bad, and the ugly budget,” chamber chair Rob Batherson said.

The level of deficit spending far exceeds what was promised during the election, he said.

Figures released as part of the government’s first budget show an anticipated deficit of $29.4 billion in 2016-17, slowly reducing year by year to $14.3 billion in 2020-21 – the latest year projected in the budget.

“That is the biggest long term risk in this budget that will affect not only us here in Halifax but Canadians across the country.”

Tweet This Click to share quote on Twitter: "That is the biggest long term risk in this budget that will affect not only us here in Halifax but Canadians across the country."

The decision not to cut the small business tax rate is also a “bad aspect,” Batherson said.

However, he highlighted infrastructure and transit spending as “good” aspects of the budget, that could potentially save Haligonians money on future municipal fees and taxes.