Its an extremely tight corner that we've been painted into. I do not see any situation where any Federal government could not put together a budget, currently, and not run a deficit - especially given our 'requirement' to meet certain standards with NATO now, coupled with the present trade situation we are locked into - short of slashing CPP/OAS/GIS payments to those retired, raising the GST by 3-4 %, NOT giving a pay raise to the CAF, slashing the PS by 15% across the board, effective immediately, slashing Federal transfer payments by 15-20% effective immediately.
If 50+.01% of the population is ok with that, then go ahead. But understand that will be trigger a sudden dramatic recession, collapse the housing market (meaning tens of thousands of mortgage defaults and homelessness), a flight of capital investment, a spike in the mortality rates, suicide rates will spike, hospital wait lists will spike, a massive loss in the 'best and brightest' because why stay in a country where the standard of living is falling, wages are falling and opportunities for advancement is closed, etc, etc, etc.
The path out of our current situation does not lay with creating a balanced budget this fiscal year or the next, it simply does not.
Question - which G7 country or even G20 country will run a balanced budget this year or next? I am genuinely this question as I don't have a clue what the answer is but am curious to know.