By Canadian Press

Federal campaign has less emphasis on balancing the budget amid pandemic: expert

Sep 1, 2021 | 1:15 PM

An economics professor says eye-popping expenses from the pandemic have affected people’s perspectives on federal deficits, and party strategies are shifting away from balancing budgets.

University of Calgary professor Trevor Tombe says there was much more emphasis on balancing the budget quickly in the ’90s, when debt levels then were larger compared to the GDP than they are now.

He says political strategies around deficits have shifted to the point where the Conservatives are proposing to balance the budget over 10 years without cuts.

Tombe says the Conservative strategy relies on increasing revenues from a growing economy, while expenses are kept at the same level they are now.

Meanwhile, he said the Liberals are focusing more on managing figures like the debt-to-GDP ratio, which could allow them to continue running deficits that are reasonable — a strategy that Tombe said has economic merit as well.

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This report by The Canadian Press was first published Sept. 1, 2021.

The Canadian Press