Prime minister cautioned Canadians as Ottawa moves to curb spending to balance near-record military expenditures
Mark Carney has told Canadians to prepare for austerity measures and his finance minister warned of “tough choices” in the coming months, as the government attempts to balance near-record defence spending, cuts to government programs and a trade war with the United States.
Carney, the former central banker and economist turned politician, has been meeting senior ministers ahead of the fall budget, and hinted cuts were coming to the federal bureaucracy.
“It’s an austerity and investment budget at the same time. And that is possible if we’re disciplined,” he said, adding that there would be no cuts to healthcare spending, education transfers or transfers to individuals.
In remarks critical of his predecessor, Justin Trudeau, Carney said the rate of government spending was too high and outpaced the growth of Canada’s economy – a view shared among senior cabinet ministers who also held top-level posts under the previous prime minister.
