The Canadian Centre for Policy Alternatives is warning against austerity measures to address the provincial government’s fiscal bottom-line.
Saskatchewan director Simon Enoch says his province provides an example of how austerity does more harm than good.
He says the Saskatchewan government used resource revenue to subsidize “unsustainable tax cuts and over-priced megaprojects” instead of investing in programs and building a sovereign wealth fund.
Enoch says Newfoundland and Labrador should hold off on austerity measures during an important economic recovery period.
He says making cuts during an economic recovery only contracts the economy and leads to an increase in the debt and deficit.
Budget Day in NL is April 7, the same as Budget Day in Ottawa.