The budget math used by the government to calculate how much to spend on social programs is wrong, says one of the authors of a new report that will give a new boost to the government.
The problem, the authors say, is the same as it was before the Conservatives took power in 2011: the government needs to make sure its budget is balanced and balanced well.
“There’s no real reason why the government can’t have a balanced budget and be able to spend it,” said Prof. Eric Vassallo, a professor of economics at the University of Toronto, in an interview from Ottawa.
But the problems are different now.
The Liberals’ 2015 budget left the government with $1.9-billion more than it originally estimated for the 2017-18 budget.
“This budget was supposed to be balanced and it didn’t.
That is the problem.
The numbers are wrong,” said Vassalo, who authored the report, “In Defence of Balanced Budget.”
The report, co-authored by two academics, the former director of the Canadian Centre for Policy Alternatives, and the University in Ottawa’s James Gleeson, makes the case for a balanced or even surplus budget.
It also makes a number of recommendations, including an end to the mandatory minimum tax, an increase in the federal child benefit, an end of the Canada Child Benefit, and more money for social programs.
The report is the latest in a string of policy initiatives the government has made to tackle the problem of underfunding.
Last week, the government unveiled a plan to increase the amount of money the government makes available for social assistance to $7.5 billion a year.
In January, it unveiled a five-year, $100-billion plan to modernize Canada’s social assistance system.
The government has also announced $20-billion in measures to improve social assistance in other provinces and territories.
In a separate policy announcement, it announced it would spend $1-billion to buy back $1 billion of debt it had accumulated.
But Vassello said he doesn’t think that is enough to fix what he sees as a systemic problem.
“You can’t get to a sustainable balance without the government spending money,” he said.
“That’s a tough pill to swallow for the Liberals, but they’re the ones who are really paying for it.”
In 2015, the Conservatives used a budget that had a deficit of $1,637-million, but instead of spending the surplus, the federal government took a $300-million loss on its investments.
The deficit in 2016-17 was $2.6-billion, but the Conservatives spent $2-billion on spending cuts.
This year, the Liberals will use the same strategy and will spend the surplus and the loss on spending.
In the report’s recommendations, the Liberal plan includes a number that might surprise some people: a new income-splitting program for families.
This would cut the income tax bracket to $42,700 for families with children and a maximum $6,400 for families in the top income group.
This is in addition to the existing income-tax cut for families earning more than $150,000, which would be extended to families earning $150-million or more.
“These measures are intended to create more fairness, but at the same time to ensure that those earning higher incomes are not burdened with higher tax rates,” the report says.
“In my opinion, they would also help alleviate the problem associated with the current situation.”
The Liberals have promised to reduce income-related taxes, which is another way the Liberals can make their budget more balanced.
But that could take time.
In 2015-16, the tax rate on income over $200,000 was 33 per cent.
The current rate is 25 per cent and would drop to 25 per.cent in 2019-20.
The Liberal plan is expected to add to the deficit.
The budget also says it will add $200-million a year to the Canada Health Transfer program, a major entitlement program for seniors.
The Conservatives have also promised to spend $500-million to help families with the cost of child care.
But there are some problems with the plan.
A recent study from the Institute of Public Policy found that the Conservatives’ plan would reduce benefits for some of the most vulnerable seniors.
For example, a single parent with two children under the age of 18 who earns between $45,000 and $85,000 would receive about $5,000 less in income assistance.
And those with incomes below $30,000 will also see a reduction.
There are also some other problems with Vassillo’s budget proposal, such as the proposal to provide more money to help people who are unemployed.
The plan also would raise the amount for the Universal Child Care Benefit, which has been targeted by the NDP as a way to pay for the Canada Pension Plan, but that program is set to expire at the end of 2019.
Vassato said he has received complaints about the cost