Fiscal outlook for Newfoundland and Labrador dire, CTF says no to federal bailouts

The Trudeau Liberals have bailed out the province on two resource projects to the tune of $5.2 billion.

ADVERTISEMENT
Image
Alex Anas Ahmed Calgary AB
ADVERTISEMENT

The federal government remains lackadaisical in efforts to reduce spending in Newfoundland and Labrador, despite the latter’s dire fiscal outlook.

Prime Minister Justin Trudeau announced today that the Trudeau Liberals will spend $2 billion bailing out Newfoundland and Labrador’s Muskrat Falls hydroelectric project. A further $3.2 billion will be transferred to the government of Newfoundland and Labrador through proceeds from the federal government’s stake in the Hibernia offshore project.

"[These bailouts] won’t solve all of Newfoundland and Labrador’s problems, so it’s imperative for the province to find savings so we don’t see a second or a third bailout," said Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation (CTF). Newfoundland and Labrador’s own recent economic recovery report opposed a federal bailout. "A federal bailout is not the answer," read the report. "A bailout, and all that it implies, will have a negative long-term impact."

The CTF is warning that the bailout for Newfoundland and Labrador sets a bad precedent for other provinces that may be looking for a taxpayer bailout. With $400 billion of debt, Ontario is the most indebted subnational government in the world.

Newfoundland and Labrador have the highest per-person program spending of all provinces. If the province brought its spending in line with other provinces, its taxpayers would save more than $1 billion annually.

"This means all Canadian taxpayers are now responsible for the bad decisions made by big-spending politicians in Newfoundland and Labrador," said Terrazzano. "Not only is this bailout a huge cost for Canadian taxpayers, but there aren’t any strings attached to force the province to save money," adding: "We need provincial balanced budget legislation to make sure all Canadians are not on the hook for every provincial politician’s pipe dreams."

The federal government projected another $2.7 trillion in debt before balancing the budget in 2070. This is in addition to the current $1 trillion in existing federal debt. Interest charges will cost taxpayers about $3.8 trillion by 2070. The federal government won’t return to a balanced budget until 2070 under the status quo, according to supplementary data released by the Parliamentary Budget Officer in its most recent Fiscal Sustainability Report.

CTF said Finance Minister Chrystia Freeland has failed to present a long-term plan to balance or cut spending, stating the federal government instead focused on ensuring federal stimulus dollars aid an economic recovery.

ADVERTISEMENT
ADVERTISEMENT

Join and support independent free thinkers!

We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.

Support The Post Millennial

Remind me next month

To find out what personal data we collect and how we use it, please visit our Privacy Policy

ADVERTISEMENT
ADVERTISEMENT
By signing up you agree to our Terms of Use and Privacy Policy
ADVERTISEMENT
© 2024 The Post Millennial, Privacy Policy | Do Not Sell My Personal Information