Majority say slashing budget can tackle inflation woes
As the Canadian government gears up to unveil its federal budget on April 16, a new poll has revealed that a significant majority of Canadians are calling for Prime Minister Justin Trudeau to slash government spending.
This sentiment is fuelled by widespread concerns over inflation, which many believe has been exacerbated by the government's fiscal policies. A Nanos Research Group survey shows that 63% of Canadians prefer a reduction in government expenditure, a decision fraught with complexities as the Trudeau administration navigates the pressing need to tackle high housing costs and considers increasing defence and industrial subsidies.
“Canadians by a large margin prefer spending reductions over increased spending. As Canadians exercise their own economic restraint as they struggle to pay for housing and groceries, they likely expect the federal government to also exercise fiscal restraint,” Nanos Research chief data scientist Nik Nanos said.
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The survey also dives into how Canadians want the government to redirect the funds saved from spending cuts, with 38% advocating for debt repayment and 25% favouring tax cuts. Amidst these findings, there's a small portion of the population under 9% who support increased spending, funded potentially through higher taxes—a concern that has stirred anxiety among business groups.
This sentiment comes at a critical time, with the government's November budget update projecting significant deficits in the coming years, but with a commitment to reduce the deficit to below 1% of GDP by 2027.
What’s causing inflation? The Nanos poll found out a third of Canadians attribute it to government spending and deficits, which is consistent with attitudes last summer. Interestingly, 26% blame inflation on business practices, a significant increase from 2023.
"Events like the Ukraine-Russia war and the pandemic are taking a back seat to a focus on business pricing practices and government spending,” Nanos said.
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