Some fiscal authorities who normally advocate prudence claim Canada has fiscal room it should use in the November 4th budget. The argument rests on Canada having a lower net debt burden than other developed countries. But some of those already face pressure to raise taxes and slash spending. The article suggests a better strategy is to reallocate within taxes and spending to focus on promoting economic growth.
Don Drummond is the Stauffer-Dunning Fellow and Adjunct Professor at the School of Policy Studies at Queen’s University.