Liberals to hike pay for 10,000 bureaucrats even as federal deficit continues to swell
The announcements come as finance officials estimate the federal deficit will hit $343 billion in 2021, or roughly 16 per cent of GDP, prompting calls for aggressive fiscal belt-tightening.
Those costs would have to be cut in order to trim the Liberal government’s massively expanded budget, observers say. Other major budget expenses, like transfer payments to the provinces or elderly care and child care benefits, would be far more politically untenable to cut. The department under Treasury Board Minister Jean-Yves Duclos did not immediately respond to a request for comment on the agreements with PSAC.
“There are millions of Canadians who have lost their business, lost their job, taken a pay cut, and now they see people in government not only making no sacrifice at all, but actually getting a pay raise, which ultimately is going to come out of the pockets of people working in the private sector,” he said.
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