Federal Budget: a breath of fresh air

socioeconomique-regionaleThe maiden budget of the Government of Justin Trudeau brings a real breath of fresh air. It presents radical changes in many ways when compared to all Conservative budgets introduced during the last decade. Here’s how socioeconomic invited representatives on Tuesday in La Tribune, summarized in a few words, the first Liberal budget Bill Morneau. The mood was good, in general, around the table.

“We can say that this is a government that keeps its promises. There were no big surprises. Measures affecting employment insurance and child allowances meet the commitments made to the middle class during the election campaign. The infrastructure program obviously very interested municipalities and we are pleased that the commitment to double spending over 10 years is respected, even if the investments seem less important in the early years, “outset said the Chairman of the Executive Committee of the City of Sherbrooke, Serge Paquin, also rejoiced that the federal government agrees to pay up to half of eligible costs in respect to public transit.

Note that Mayor Bernard Sevigny preferred to leave his colleague comment on the budget as his wife, Marie-Claude Bibeau, is Minister in Ottawa.

The vice-president of the CSN, Jean Lacharite, was smiling while liberal measures were unveiled, including the recovery of tax credits for workers’ funds. “I am also very pleased that Harper reform in 2012 related to Employment Insurance should be abolished. also pleased with the accessibility-related enhancements, but it does not meet all our demands. I still worried for regions with high seasonal unemployment rate in Quebec, “he noted adding that, otherwise, it is very satisfied with the reinvestment in the CBC and in the middle way more arts General.

A deficit “healthy”

The projected deficit of 29.4 billion for the year 2016-2017 not worried socioeconomic players in the surveyed area. “Making a deficit is justified given the current Canadian economy. It’s clean. What matters is not the level of spending or the size of the deficit, but the ratio of our debt to our GDP. And with a 32,5pour percent ratio, Canada is best positioned in the G7, “said Luc Savard, professor at the University of Sherbrooke.

“By cons, I would have preferred more specific measures that promote rapid investments rather than changes in programs that could, in the longer term, harm the economy as the context evolves,” added the economist.

“This is a budget based on the Canadian economy and not on ideological principles. Globablement, I agree with the budget, but we’ll have to follow him closely in the coming years, “added Réal Létourneau, tax specialist at Raymond Chabot Grant Thornton.

“The real surprise is when the Liberals challenged Canadians by telling them they were going to a deficit and the fact that they are elected on it,” Mr. Létourneau, calling the strategy audacious.

Investment in research, innovation and technology also welcome all stakeholders. “Further evidence of the major course change in the federal government,” says Savard.

“This is a total reversal which brings us to the center and even center left. It’s almost a social democratic budget, “says Paquin.

The budget is aimed at the middle class, but very few companies note the stakeholders.

“We’re not talking a lot of SMEs to share that decreased the tax rate is lower than expected. I think this is bad news, because SMEs are the engine of our economy. We do not talk about retail, “said the president of the Chamber of Commerce of Sherbrooke, Bruno Lavoie.

“By cons, the money distributed to the middle class should help the retail trade,” said M.Paquin.

“We will monitor this, as measures affecting entrepreneurship might be subsequently announced,” makes M.Lavoie.

Overall, the budget is seen as populist.

“It is not in this budget that Trudeau will lose popularity points over the next few months,” said Mr. Savard.

“It’s a honeymoon,” concludes M.Letourneau.

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