This is her second budget, but the first to actually have Chrystia Freeland’s signature. And he gives himself three years to keep his promises. He has leisure time. A luxury that also has ill effects.
We are no longer in the management of a pandemic crisis or in a rush election for six months. The agreement on NDP allows the Trudeau government to survive and gives Chrystia Freeland the opportunity to set a vision for Canada’s finances and economy, and execute the game plan.
The 2022 budget therefore marks the real beginning of the Freeland Finance era. The document lays the foundations for the changes the Trudeau government wants to bring, after the pandemic, to the Canadian economy and its social safety net.
Chrystia Freeland’s first imprint on the budget: a resemblance of a return to fiscal prudence. The document is partially written in orange pen to honor the agreement NDP, but does not fall into overspending mode. After leading to the biggest deficit in Canada in history during the pandemic, the minister certainly didn’t want this image to stick to his skin.
Then there’s the little Robin Hood side to the budget. Ms. chooses. Freeland to raise taxes on the richest Canadians and banks, and collects a one-time $ 6 billion dividend from financial institutions to help pay for costs incurred during the COVID-19 pandemic.
It seems consistent with the values he conveys in his book Plutocrats : the rise of the new super-rich and the fall of otherspublished in 2012 and in which he lamented inequalities and explored solutions to resolve them.
Moreover, several measures affecting the energy sector clearly bear its mark. It is said behind the scenes that Ms. Freeland is campaigning for the Bay du Nord oil project, which was approved this week. He is keen to include in his budget a tax credit for carbon extraction and storage, which the more environmentalist element of the Liberal caucus sees as a disguised subsidy to the oil industry.
A stutter of an economic policy
And then, it outlines the beginnings of an economic and industrial strategy in conjunction with the fight against climate change, emphasizing assistance for the purchase of electric vehicles, the production of rare minerals for on their batteries, the establishment of a new innovation and investment agency. to unlock the potential of Canadian entrepreneurship.
The whole thing expresses the stutter of a long -term economic policy.
But the Liberal’s main advantage in this budget is also one of its main flaws: time.
The government gives itself time to think about the next steps and to carry out its vision. But he also seems to lack momentum. It’s like he’s preparing for a marathon rather than a sprint.
Despite the urgency of inflation, there are no short -term measures to ease the burden on families at the grocery store or at the pump.
Despite the climate emergency, there are few concrete steps that can be quickly implemented to achieve its ambitious targets. Conversely, a new oil project was approved this week.
Despite repeated requests from the provinces, there is not a single indication that an increase in health transfers is imminent.
There is also a lack of detail on strategy for economic growth and a lack of detail on deficit reduction and spending control. The information, according to the budget, will be announced later, within 6 or 12 months.
Symbiosis
Trust between the prime minister and his finance minister is often key to their safety.
The reason a prime minister is successful is choosing the right finance minister, Jean Chrétien said of Paul Martin at the time. And the latter replied: I, as Minister of Finance, chose my Prime Minister properly!
There is strong trust between Justin Trudeau and Chrystia Freeland. They work well together, they are often on the same page and support each other.
Stephen Harper and Jim Flaherty have a deep respect for each other, but their relationship is not very close. Jean Chrétien and Paul Martin worked well together, but their personal rivalry can sometimes muddy the airwaves.
Therefore, Justin Trudeau and Chrystia Freeland seem to have a prime minister-finance minister relationship that is very rare, if not strange, in recent Canadian politics.
So far, both benefit from their symbiosis. But it could have the opposite effect if Freeland’s budget promises are not fulfilled. And this, regardless of whether or not Justin Trudeau will continue his political career after the next election. Or if Chrystia Freeland succeeded him as Liberal leader.
Source: Radio-Canada