MNI: Canada Conservative Pledges Cost CAD51.3B Over 5 Years

Canada's Conservative Party Leader Erin O'Toole said Wednesday his election spending promises will cost CAD51.3 billion over five years, details announced around televised debates that could carry him to a come-from-behind win over Liberal Prime Minister Justin Trudeau in a Sept. 20 vote.

The deficit will shrink to CAD24.7 billion in five years, according to party documents, from this year's budgeted CAD155 billion. The costs as given are less than Liberal pledges for CAD78 billion of extra health, housing and childcare programs over five years with a CAD32.1 billion deficit at the end of that timeframe.

The costing was released before two nights of debates that could shift control of a campaign where the Liberals' polling lead has faded to a draw with the Conservatives. Trudeau called the snap vote last month hoping to capitalize on vaccination progress, generous relief checks and a job rebound, momentum broken by more recent reports that GDP shrank in the second quarter and a rise in Covid cases linked to the Delta variant.

"With the only shrinking economy in the G7, Justin Trudeau has nothing to show for running reckless deficits and spending," O'Toole said in a statement.

AUSTERITY TAKES A BACKSEAT

The preliminary list of Conservative promises released Aug. 16 sought 1 million new jobs within a year, business tax breaks and replacing the Liberal plan for ten-dollar-a-day childcare with tax credits.

O'Toole says he needs a decade to balance the budget after paying more for healthcare and a sales tax holiday, while the Liberals set no timetable to balance the budget in their five-year plan. The new Conservative fiscal largesse contrasts with Stephen Harper's austerity after the 2008 recession that helped bring Trudeau to power in 2015. O'Toole promised the plan can be reached without spending cuts or relying on a boost to economic growth, areas where the Liberals have attacked in recent days.

MNI has reported that while inflation and housing are major voter concerns, the campaign trail remedies may not give either leader a clear path to power. (See: MNI: Cost of Living Woes May Bring Canada Election Stalemate) The CBC network's poll tracker showed that as of Wednesday, the chances of the Liberals winning a majority government have faded to 11% from 45% when the campaign was launched. The Conservatives are close to the Liberals on potentially winning the most seats in the House of Commons, at 39% versus 46% for the Liberals.