Special fiscal update podcast
The Liberal government's fall economic update included a course correction to respond to a worsening economy in the form of an infrastructure spending boost, the upcoming creation of an infrastructure bank and a focus on attracting foreign investors.
But what Finance Minister Bill Morneau's state-of-the-economy presentation did not include is a roadmap to return the books to balance.
"What we want to tell Canadians is we believe that we should be focused on making investments for today and for tomorrow that will allow us to have a higher level of economic growth in this country," he said. "We know we are doing it in a fiscally responsible way."
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- Fiscal update boosts Liberal infrastructure plans but offers no path back to balance
On a special edition of The House podcast, Chris Hall sits down with Rob Russo, the parliamentary bureau chief for CBC, senior CBC reporter David Cochrane and Amy Castle, the executive producer of Power & Politics on CBC News Network, to discuss Morneau's fiscal update and what guided the CBC's editorial decisions about its coverage.
The headline for last March's budget was a $120 billion infrastructure plan, set to roll out over ten years. The fall economic update calls for a $186 billion plan unfolding over a longer period.
The government is also adding two new categories of infrastructure spending to the scheme: trade and transportation and rural and northern communities. The previous three categories from the last budget remain: public transit, green infrastructure and what the Liberals call "social infrastructure," such as affordable housing or child care facilities.
But the biggest infrastructure move is the much-anticipated Canada Infrastructure Bank.
While legislation to create it won't be ready until next spring's federal budget, Morneau revealed the scope of the investment the new bank will oversee.
At least $15 billion will come from the public purse, while an estimated $20 billion would come from new private investors. The public money is intended to fund things that wouldn't normally be able to provide a return for private investors.
While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecasted in the spring budget, the new figure no longer includes a $6 billion dollar cushion. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending that's unfolded since last spring.
The opposition parties were quick to raise a series of concerns.
"They think this failed plan is somehow working, and they're doubling down on it," said Rona Ambrose, the interim leader of the Conservative party.
NDP Leader Tom Mulcair said Justin Trudeau had promised municipalities a "big shot in the arm" for infrastructure, but now he is delivering a "privatization bank."