The Big Story Big cuts, even bigger spending: Will Carney's budget save the economy?
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Nov 5, 2025 Ian Lee, an Associate Professor at the Sprott School of Business, dives into Mark Carney's inaugural budget, revealing a hefty $78 billion deficit and comparing it to Trudeau-era priorities. He discusses missed opportunities for quicker revenue through asset sales and critiques the government's cautious approach to austerity. Lee advocates for means testing in social programs and emphasizes the need for increased competition in sectors like telecom to drive productivity. The conversation also touches on the challenges of defense procurement and optimistic revenue forecasts amid trade tensions.
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Shift From Redistribution To Investment
- Carney shifted the budget away from consumption and redistribution toward investment and productivity focus.
- This marks a major departure from the Trudeau years, signaling a reorientation of federal priorities.
Raise Cash By Selling Assets
- Sell non-core government assets like the pipeline and airports to raise immediate revenue.
- Use privatizations to reduce deficits without deep cuts to core programs.
Downsize The Public Service Deliberately
- Reduce public service headcount faster than attrition to save substantial salary costs.
- Use precedent and decisive cuts to generate real fiscal room amid rising deficits.