Stephen Gordon critiques the boutique budget.
As noted here, most of the federal government’s spending consists of writing cheques to persons, to governments and to bondholders, and cuts to these items have been ruled out. The projected decline of spending as a share of GDP is due entirely to the announced freeze on program spending. This decline – along with the increase in PIT revenues is projected to eliminate the deficit in the next three of four years. This scenario seems implausibly optimistic.