OTTAWA — Conservative Leader Pierre Poilievre is slamming Liberal leadership candidate Mark Carney’s plan to split the federal budget, calling it a “sneaky accounting trick” to avoid balancing the books.
Carney vowed Wednesday to split the budget into two streams, capital and operating spending, and balance the operating side while running small capital deficits.
At a press conference in Toronto, Carney promised he would reduce the debt-to-GDP ratio over time and rein in government spending.
He did not specify what kind of fiscal anchor he has in mind but said that Prime Minister Justin Trudeau’s government has been spending “too much.”
According to a background document sent out by his campaign, the operating budget would be balanced within three years while a Carney-led government would “run a small deficit on capital spending.”
In a statement sent to The Canadian Press, Poilievre said that it’s “déjà vu all over again,” noting that Trudeau pledged small deficits in 2015 but federal government spending has since ballooned.
“Carney’s promise that he will balance the ‘operating budget’ while racking up limitless inflationary deficits on pork barrel spending, pet projects and Liberal waste will result in the same disastrous results as fellow Liberal Justin Trudeau,” he said.
Asked by a reporter how he would pay for his promises, Carney ruled out tax hikes, saying that wouldn’t make sense as he considers a middle-class tax cut.
“We’re not going to increase taxes to cut taxes,” he said.
Rival candidate Chrystia Freeland was campaigning at a dairy farm in Waterville, Que. with Liberal MP Marie-Claude Bibeau on Wednesday.
Freeland said she would fiercely defend Canadian agriculture and supply management from U.S. President Donald Trump’s trade threats.
All the leadership candidates, including Karina Gould, Frank Baylis and Ruby Dhalla, will square off next week in two televised debates in Montreal — the only debates in the race.
This report by The Canadian Press was first published Feb. 19, 2025.
Kyle Duggan, The Canadian Press
