Boosting Canadian seniors' benefits would cost a 'chunk of change,' says PBO
Canada鈥檚 budget watchdog says the federal government may not meet its fiscal anchors if it acquiesces to the Bloc Qu茅b茅cois鈥 demand to expand seniors benefits in exchange for keeping the minority Liberals in power.
Last week, Bloc leader Yves-Fran莽ois Blanchet confirmed his party will vote against a Conservative non-confidence motion set to take place this week, giving the Liberals enough support to avoid an imminent election.
In return, Blanchet is pushing Prime Minister Justin Trudeau's government 鈥 through a private member鈥檚 bill 鈥 to expand the government鈥檚 increase in Old Age Security (OAS) payments to pensioners aged 65 to 74. The Liberals had announced an increase of 10 per cent in OAS payments in 2022, but only to those aged 75 years and older.
鈥淲e have deposed a law which is now at the very centre of the survival of this government. This is what we call power,鈥 Blanchet told reporters on Thursday.
But in an interview with Vassy Kapelos on CTV鈥檚 Power Play Monday evening, Parliamentary Budget Officer Yves Giroux said a further expansion would be a pricey commitment for the federal government. He calculates the Bloc鈥檚 demand would come with an annual price-tag of more than $3 billion, with a total cost of $16.1 billion over five years.
鈥淚t would also be a bit tricky to make that fit within the fiscal framework that the government has indicated itself in the last budget. . . that would be a significant chunk of change, to say the least,鈥 Giroux told Kapelos. He referred to the government鈥檚 targets to keep the deficit below $40.1 billion this fiscal year and reduce both the debt-to-GDP ratio and deficit-to-GDP ratio in 2024-2025. In addition, the government aims to keep deficits to one per cent of GDP by 2026-2027.
鈥淎ll these constraints would be at severe risk if the government was to acquiesce to that demand without cutting expenditures elsewhere,鈥 he said.
Deputy Prime Minister and Finance Minister Chrystia Freeland was asked Tuesday about the Bloc鈥檚 demand and whether the federal government can afford that expense. Freeland would only say 鈥渃onversations are ongoing.鈥
鈥淲e are having good conversations about all possible economic measures with both the Bloc and the NDP,鈥 Freeland said.
You can watch CTV Power Play鈥檚 full interview with Parliamentary Budget Officer Yves Giroux in the video player at the top of this article.
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