MNI BRIEF: Carney Sees Small Deficits To Fund Infrastructure
MNI (OTTAWA) - Mark Carney on Wednesday laid out a fiscal platform in his bid as the leading candidate to replace Canadian Prime Minister Justin Trudeau next month, pledging to slim deficits by cutting operating expenses while boosting capital investment and reducing middle-class taxes.
The former BOE and BOC Governor sought to distance himself from Trudeau by criticizing a 40% jump in the civil service since 2015 and missed fiscal targets. Carney's pledge for "small deficits" also echoes what Trudeau promised as he came to power, and Carney embraced the current goal of lowering debt as a percentage of GDP. (See: Canada Making Fiscal And Climate Policy Mistakes: Biz Council)
“My government’s fiscal policy will focus first on reining in government spending,” Carney told reporters in Toronto. Using public money to boost investment is needed in a country where spending has fallen from 14% to 11% of GDP over the last decade, he said.