this is totally misunderstanding the situation.

what actually happened is that they looked at the numbers, knew that harper was leaving us with a structural deficit and changed their platform to deficit spending to compensate. that is, the deficit spending promises happened because they knew harper was leaving a deficit to begin with.

consider the other scenario: suppose they had promised balanced budgets (as the ndp did - "according to harper's estimates", indicating they also realized the reality, but weren't honest about it.). they would have been unable to follow through on that promise and they would have been nailed by the media on it. so, they took the option of being honest about it and promised deficits, instead.

there were consequently two motives to this policy. the first was to manage expectations. the second was to make it clear that they were inheriting deficits, and to place the blame where it belongs.

now, we *do* need this infrastructure spending, anyways. but the idea that it's going to have a significant effect on the economy is something no economist would endorse. like, you're talking about a fraction of a percent of gdp with these kinds of modest deficits, it's all temporary and the assumptions of a closed economy on multiplier effects don't pan out. but, they knew that.

so, what effect will this have on spending? none. you've got the cause and effect backwards.

that said, there are some cost-saving mechanisms in the budget (most notably the cut in childcare handouts for rich people) and there are some possible significant revenue streams coming (like marijuana). i think you should see a surprise surplus a year or two early as a result of these changes.

but, don't confuse yourself. they knew this was coming. it's why they promised deficits.

www.cbc.ca/news/politics/parliamentary-budget-officer-trudeau-plans-1.3312757

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stillnojustice
Why didn't Trudeau's own "PBO" economists pick up on the Canadian economy continuing to go down the crapper for another 2? years after the election?

Were the Liberals expecting a miracle economic recovery after ten years of the most corrupt dictatorship that Canadians have ever seen.

jessica murray
they did.

that's why they didn't promise they could balance the budget right away; they knew they were being left with a structural deficit, and based their platform around it.

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Guardian52
So Harper's campaign candy about balancing the budget was just a big lie? Why am I not surprised? And why wasn't this brought to light before the election?

jessica murray
it was brought to light during the election - it's the reason the liberals campaigned on deficits.