Ottawa has a ‘deficit issue that has to be dealt with,’ Liberal says – National

Canada has a “deficit issue that needs to be dealt with,” government House leader Steven MacKinnon says as Parliament resumes after summer break.

He told reporters Monday that there are some key issues that likely will be addressed as Prime Minister Mark Carney prepares to release his federal budget this fall.

“We have a deficit issue that has to be dealt with. Mr. Carney has made it very, very clear that all ministers and all departments must participate in making the government more efficient,” MacKinnon said, while being asked by reporters what the deficit in the upcoming budget could look like.

“I don’t want to characterize the deficit other than what I’ve already said — it is substantial and needs to be dealt with and is being dealt with, and with incredible seriousness by the entire government.”

The federal deficit in the last budget in April 2024 stood at $40 billion, while the fall economic statement saw the deficit balloon to $61.9 billion.

That number is also projected to rise with Carney signalling new spending for NATO defence commitments as well as economic investments in projects aimed at improving Canada’s positioning during the trade war.

An analysis by the C.D. Howe Institute predicted that the NATO defence spending in particular could push the deficit to $92 billion this fiscal year.

MacKinnon said: “Canadians expect their tax dollars to be spent by the government with maximum impact. And maximum impact today means combating crime, means building houses, means diversifying our trade and growing the economy so that young people can find a place to prosper in Canada.”

The Liberal government has also announced it plans to table bail reform legislation next month.

That bill is expected to introduce stricter bail conditions and sentencing for some crimes, particularly those involving organized crime, human trafficking, home invasion and car theft, Justice Minister Sean Fraser said in an interview with The Canadian Press.

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MacKinnon was asked whether the government also plans to propose changes to Canada’s self-defence laws, which the Conservatives have vowed to table after an Ontario man was charged last month with assaulting a home intruder in his apartment after being accused of using a knife on the intruder.

The intruder allegedly carried a crossbow, according to court documents.

The case has sparked debate about Canada’s self-defence laws, with Conservative Party Leader Pierre Poilievre pushing for changes to the Criminal Code to say the use of force is presumed to be reasonable to defend your home if someone breaks into it.

MacKinnon said the Liberal plan will be a “significant initiative.”

“I think what you can expect to see from the government is a significant initiative with respect to crime, with respect to all sorts of crimes in this country: hate crimes, violent criminals and a pretty comprehensive approach to making our communities safer,” he said.

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