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Editorial: Liberals spend heavily

With an election on the way, the federal government is spreading money around in the budget announced Tuesday. While Islanders will benefit from some of that cash, it comes with a cost: more budget deficits.

With an election on the way, the federal government is spreading money around in the budget announced Tuesday. While Islanders will benefit from some of that cash, it comes with a cost: more budget deficits.

With many construction projects on local wish lists, the $2.2 billion for municipal and First Nations infrastructure could hold promise for this area. Local politicians will be sharpening their pencils in anticipation.

Among the Island’s large population of seniors, those who find it hard to make ends meet will welcome improvements in the guaranteed income supplement for low-income seniors, which comes with a $1.8-billion price tag over four years. It doesn’t start until 2021.

For those straining to afford a home in high-cost Greater Victoria, new rules will allow first-time homebuyers to borrow up to $35,000 from their RRSPs, up from $25,000. Will going into more debt, even to yourself, make much difference in today’s market?

Over five years, the government will spend $4.5 billion to improve Indigenous Peoples’ living conditions, including $1.2 billion for better social services.

All this largesse comes with $20-billion annual deficits at a time when we should be trying to balance the budget. And that is likely to mean pain down the road.