PM says he won't slash spending

Business Council of Canada questions government's own commitment to balancing budget

- ALEX BALLINGALL

Prime Minister Justin Trudeau's government has faced criticism from business groups about the increasing budget deficit and an increasing debt load that they say is undercutting Canada's economic growth.

MONTREAL Prime Minister Justin Trudeau says he doesn't believe in slashing federal spending to please business groups or opposition Conservatives, raising questions about how his Liberal government would meet its own goal to cap annual budget deficits in the coming years.

Speaking to reporters on the final day of the Liberal cabinet retreat ahead of the winter sitting of Parliament, Trudeau brushed aside a recent statement from a prominent corporate lobby group that concludes meeting the goal could require $12 billion in annual spending cuts or increased taxes far more than the reduction of $15.4 billion the Liberals have pledged to make over the next five years.

Asked if he is willing to make deeper cuts or raise taxes to limit deficits to one per cent of Canada's gross domestic product (GDP) within the next three years, Trudeau said he does not believe reductions to government spending which has ballooned under his government since 2015 - will help the economy.

"My focus needs to be and will continue to be on how we're there to support Canadians in a challenging time, and how we create greater growth and opportunities for them in the years to come and that doesn't come with austerity and cuts, as proposed by many members of the business community, as proposed by many Conservative politicians," Trudeau said. "We continue to believe that strong, confident countries invest in themselves and in their people."