Mark Carney, a candidate for the Liberal leadership, unveiled a dual-stream budget proposal while campaigning at a dairy farm in Waterville, Quebec, alongside Liberal MP Marie-Claude Bibeau on Wednesday. Carney, who has served as both the Governor of the Bank of Canada and the Governor of the Bank of England, aims to split the federal budget into two distinct streams: capital and operating spending. This innovative fiscal strategy involves balancing the operating side while allowing for small deficits in capital expenditures.
Carney's fiscal plan outlines a commitment to review ongoing government expenses rigorously. By maintaining current transfers to individuals and provinces, he aims to ensure that essential support remains intact. As part of his broader vision, he has ruled out future tax hikes, emphasizing the illogical nature of such actions given his consideration of a middle-class tax cut.
"We're not going to increase taxes to cut taxes." – Mark Carney
The background document supporting Carney's plan details his intentions to balance the operating budget within three years. While he proposes running a small deficit on capital spending, he pledges to reduce the government's debt-to-GDP ratio over time. His approach reflects a commitment to fiscal responsibility while fostering economic growth and job creation.
In his campaign efforts, Carney has received remarks from influential figures like Chrystia Freeland, who highlighted the economic prudence of his fiscal strategy.
"Chrystia is presenting a fiscally responsible plan to grow the economy and create good jobs." – Chrystia Freeland
Carney's campaign efforts focus on convincing the public and party members of his capability to lead with financial acumen honed from years at top central banks. As the race for Liberal leadership unfolds, Carney's plan positions him as a candidate committed to both fiscal discipline and economic expansion.
