Ottawa needs to ‘watch our purse strings’ while supporting Canadians: Anand – National | Globalnews.ca

Treasury Board Chair Anita Anand says Canada is at a point where it needs to “watch our pocketbook” when it comes to spending, but adds that the federal government is “striking the balance” between responsibility tax and support for Canadians.

That approach is not only being taken to address cost-of-living issues like affordable housing (a key theme of last week’s fall economic statement) but also to national defense, a portfolio Anand previously led and which, according to he says, will not be affected by efforts to reduce costs. in Ottawa.

“It’s certainly an economic period where we need to watch our pocketbooks and make sure we’re delivering on the priorities that are so important to our country,” he told Eric Sorensen in an interview broadcast Sunday night. The west block.

He called the measures introduced in Tuesday’s fiscal update “aimed” at building more housing faster.

Tuesday’s update adds $20.8 billion in new spending from the spring budget over five years, with some new measures designed to boost housing supply, including rental units and affordable housing. But much of that new spending is tied to previously announced policies and programs.

One new proposal is a Canadian Mortgage Charter that will set expectations for how lenders interact with homeowners throughout the mortgage process, a move Anand called “very important.”

“Canadians often don’t know what their rights are when they visit their financial institution,” he said.

The letter would inform Canadians about measures that many banks have already implemented that can provide relief, he added, including waiving fees and costs, as well as reducing interest rates for repayments.

The fall economic statement also outlines some future priorities for the federal government, including tying federal infrastructure dollars to local governments’ housing actions, something Anand noted is already being voiced by Housing Minister Sean Fraser, in his conversations with municipalities.

The update projected the deficit for the current fiscal year will reach $40 billion, virtually unchanged from the Liberals’ spring budget forecast, with deficits shrinking, but not gone, in five years.

However, forecasts show larger deficits than previously expected, largely because the economic slowdown is expected to hit government revenues while raising federal debt-servicing costs, while new spending is slowing. incorporating into future budgets.

New barriers are being introduced with the aim of keeping deficits below one per cent of gross domestic product from 2026-27. According to the federal government’s projection of the size of the economy in 2026, that would mean the deficit would have to be limited to about $32 billion.

Anand referred to data frequently used by the Liberal government to portray Canada as “a leader in terms of our fiscal health”: the country has retained a triple-A credit rating and has the lowest deficit and debt-to-GDP ratio in the G7. . .

He added that the Liberals’ previous efforts to address affordability, such as the Canada Child Subsidy, guaranteeing $10-a-day child care across the country and extending the small business loan program well beyond the pandemic, create a record that the government intends to improve. continue despite the changing economic environment.

“We’re definitely striking a balance between the fiscal responsibility path we’re on, as well as being there to support Canadians, which is exactly what our government has done during the pandemic and will continue to do,” he said.

Being trending now

In the summer, when she was named Treasury Board chair, Anand ordered her fellow ministers to find $15 billion in savings across their departments over five years by October, building on a spending reduction promised in the spring budget.

The Defense Department has said it has identified about $1 billion in potential reductions over four years. But Anand told Sorensen those cuts will not affect the Canadian Armed Forces.

“The spending review is actually specific and will not include the Canadian Armed Forces,” he said.

“The amounts I presented in the supplemental estimates included amounts related to outsourcing (or) third party hiring, as well as executive travel. Those are funds that we are asking all departments to see where they can save.

“At a time when Canadians are watching their pocketbooks, the government of Canada is no different.”

Defense Minister Bill Blair, who was appointed to replace Anand, has publicly confirmed that Anand was “very clear” that his request to the defense department should “in no way impact the (Canadian Armed Forces’) ability ) or the support we provide. provide to CAF members.”

But Chief of the Defense Staff, Gen. Wayne Eyre, told a House of Commons committee in September that finding nearly $1 billion in savings will hit the capabilities of the Armed Forces.

He told Global News in an interview on Remembrance Day that he is “very, very concerned about our lack of preparedness” and that Canada has “a lot to do” to restore that readiness.

“I was in the portfolio as minister of national defence, and we need to grow our Canadian Armed Forces,” Anand said in response to Eyre’s comments. “We are seeing a shortfall in recruiting and we need to make sure we are prepared at all times.”

At the same time, Anand said major new acquisitions are underway that continue despite the government’s tightening, including new F-35 fighter jets, the modernization of NORAD and overall increases in defense spending. However, Blair has also said Canada may need to postpone some major procurement projects, such as the shipbuilding strategy, and make do with older equipment for now.

Anand also said his supplementary estimates include around $500 million to increase compensation and benefits for CAF members, and another $500 million in new investments for Ukraine.

He also did not say whether Canada will ever meet its NATO commitment to spend two per cent of GDP on defence. Canada currently spends 1.3 percent.

“We will continue to do whatever is necessary during this fiscal period,” he said.

—With files from the Canadian Press