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Ottawa — Federal spending had been accelerating even before this year's budget was tabled, but yesterday the Conservatives hit the gas.
The restraint that Tories preached in opposition was not in sight as Finance Minister Jim Flaherty delivered a budget in which federal spending reaches nearly $200-billion in 2007-08, up a hefty 5.6 per cent.
There was more money for provinces, especially, but also for the environment, health, public security and a list of smaller items that will allow the minority Conservatives to keep making spending announcements throughout the year.
Mentions of restraint were relegated to the back pages of the budget books, where the government pledged that the rapid growth of spending during Stephen Harper's first two years in government will slow a little in 2008-09.
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Flush with cash, the Tories chose to lure voters not just with tax cuts but with spending increases aimed at appealing to the public mood.
A poll conducted by the Strategic Counsel last week showed that 50 per cent of Canadians wanted more social spending, and only 19 per cent wanted tax cuts.
Roughly two-thirds of the extra spending announced yesterday will go to provinces in transfers, mostly as equalization payments and the Canada Social Transfer, which pays for things like education.
The money is aimed not only at appeasing provinces -- especially Quebec, which faces a provincial election next week -- but also allowing Ottawa to tout its increased social spending.
The other one-third will be split among federal programs for the environment, health, the military and public security, plus a sprinkling of cash for other programs.
The $4.4-billion in new spending announced in the budget for 2007-08 comes on top of the normal rising costs of government and items announced in previous budgets.
In all, it means spending will rise 5.6 per cent, from $189-billion to $199.6-billion. It will go up again in 2008-09, to $206.8-billion.
"We are certainly overspending," said Nancy Hughes Anthony, president of the Canadian Chamber of Commerce. "I'm concerned because the level is not sustainable.
"We're spending on everything from the CFL to truckers' lunches."
Mr. Flaherty insisted that he will keep his basic commitment to control spending over the medium term, so that Ottawa's outlays between 2005 and 2009 will not increase faster than the rate of growth of the economy, after adjusting for inflation.
He argued that this year's budget was special because it had to address the fiscal imbalance. "We're fixing it, and that's expensive," he said.
Increased transfers to provinces will cost $8.2-billion over three years.
For the 2007-08 fiscal year, it will cost the federal treasury $2.4-billion, including $1.1-billion for increased equalization payments and $1.2-billion for the Canada Social Transfer.
When it came to funding Ottawa's own programs, however, Mr. Flaherty sprinkled cash to several -- including many that a year ago qualified more as Liberal priorities than Conservatives ones, and some that might provide a stage for pre-election politicking.
There was $52-million for the 2008 Francophonie Summit in Quebec City, home to most of the Tories' Quebec MPs.
Another $30-million a year will be added to spending on cultural festivals, allowing Conservative MPs to announce a series of payments for local events.
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