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 at a press conference in Toronto on Wednesday to split the budget into two streams — capital and operating spending — and to balance the operating side while running small capital deficits.
He said Prime Minister Justin Trudeau's government has been spending "too much."
"My government’s fiscal policy will focus first on reining in government spending, and that will help create the room for personal income tax cuts so that Canadians can keep more of their hard earned money and cope with the higher cost of living," he said.
According to a background document sent out by his campaign, a Carney-led government would balance the operating budget within three years while running "a small deficit on capital spending."
Poilievre said in a prepared statement 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 various promises, Carney ruled out future 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.
Carney's fiscal plan calls for a review of ongoing government expenses but pledges to maintain current transfers to individuals and provinces.
Carney pledged to reduce the government's debt-to-GDP ratio over time but did not specify what kind of fiscal anchor he has in mind.
Katherine Cuplinskas, a spokesperson for rival candidate Chrystia Freeland's campaign, said it's "encouraging to see other candidates follow Chrystia's fiscally responsible lead."
"Chrystia is presenting a fiscally responsible plan to grow the economy and create good jobs."
Freeland was campaigning at a dairy farm in Waterville, Que. with Liberal MP Marie-Claude Bibeau on Wednesday.
She said in French that 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