In many ways, this is the approach the Liberals have taken to budgeting throughout the pandemic: predict a high deficit in the fall and then bill themselves as miracle workers when it comes in slightly lower. The 2020 fall economic statement, for example, estimated the deficit would hit $381.6 billion, but it turned out to be “only” $327.7 billion. Likewise, the 2021 fiscal update pegged the 2021-22 deficit at $144.5 billion, but last Thursday’s budget had it coming in at $113.8 billion.
Should we see a long, drawn-out war in Ukraine — which is looking increasingly likely by the day — we could see higher-than-expected commodity prices, inflation and interest rates, coupled with reduced consumption and economic output. This would significantly throw off future budgets, causing the deficit to be over 150 per cent higher than expected by 2026-27.
This would come about thanks to higher-than-expected commodity prices that would provide the federal government with additional revenues. Such an eventuality would allow Trudeau to play the miracle worker card one more time, but the gains would be short lived. Eventually, global energy prices will stabilize, and Canada will find itself in a situation in which “energy-related investment and exports remain relatively muted,” due to “uncertainty about longer-term demand for fossil fuels.
The budget does include a new carbon capture and storage tax credit, which is expected to cost the feds $35 million this year, increasing to $1.5 billion by 2026. But it will not be available to companies looking to use carbon to extract otherwise unrecoverable oil from existing wells, in a process known as “This advertisement has not loaded yet, but your article continues below.The money made available for CCS will also be dwarfed by the $8.
Who’s gotten the lions share of subsidies and tax grants? It sure isn’t renewables. Get real
'Pledged to destroy'? I've seen more energy projects going up in the past few years than I have in previous decades. Oh, wait a minute: maybe you mean 'fossil fuel industry'!
nice, but you shouldn't have used the goodguy's ship if you really wanted this one to hit, try a borg cube or something
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