NEWS
08/27/2015 10:24 EDT | Updated 08/27/2016 01:12 EDT

Justin Trudeau says Liberals plan 3 years of deficits to push infrastructure

Justin Trudeau says a Liberal government won't balance the books for three straight years but will double spending on infrastructure to jump-start economic growth.

The Liberal fiscal plan would see "a modest short-term deficit" of less than $10 billion for each of the first three years  and then a balanced budget by the 2019-2020 fiscal year.

- Chris Hall: The election's phoney debate over deficits and how to pay for promises

The Liberals also announced they would commit billions to nearly double Canada's spending on infrastructure, part of the party's pitch to create jobs and stimulate economic growth.

Trudeau, making a campaign stop in Oakville, Ont. Thursday morning, said over the next decade the Liberals would spend $125 billion on new infrastructure investment — about twice the amount the Conservatives have committed.

Investments would focus on three areas: public transit, social infrastructure such as affordable housing and seniors centres and "green" projects like clean energy infrastructure.

"Our economy needs investment in order to create growth," he said. "Our plan features three years of historic investment in the Canadian economy. That growth will eliminate the Harper deficit and we will balance the budget in 2019," he said.

Asked if he would deliver on campaign promises even if the economic situation deteriorates, Trudeau said he would be "open and transparent" with Canadians about the state of the economy.

Trudeau has harshly criticized NDP Leader Tom Mulcair for saying an NDP government would balance its first budget.

Liberals, NDP trade jabs over deficits

Trudeau says given the current economic climate, Mulcair is being "disingenuous" by promising to balance the budget and still pay for commitments like more affordable child care spaces. Trudeau insists cuts will be required under the NDP plan.

Mulcair argues he is offering a more balanced approach than his adversaries. He hasn't denied cuts will be required but has only provided a few examples of how it will be done — such as eliminating the Conservative measure to offer income splitting for families.

At a campaign stop in Toronto Thursday, Mulcair said the days of downloading big debts on the provinces would be over under an NDP government and offered a few more examples of the party's spending priorities.

"There's a whole bunch of things we're going to do differently from Stephen Harper. He subsidized oil companies to the tune of billions of dollars while he's been in power. We won't do that. He spent millions fighting First Nations. We won't do that. He spent a billion dollars on the Senate. I`m going to try and make sure Canadians never spend another penny (on the Senate)."

The decision not to balance the budget immediately likely opens to Trudeau a barrage of fresh criticism from the Conservatives.

"Justin Trudeau now says now that he's realized the budgets won't balance themselves, he's just given up trying. He's just going to run deficits all the time anyway," Harper said Wednesday.

At a campaign stop in Markham, Ont. on Thursday, Harper repeated that message, accusing Trudeau of planning "runaway spending with permanent deficits."

And Harper touted touted his own economic credentials when it was pointed out that Harper himself used deficits to combat the recession in 2009.

"My economic training tells me that's actually the time when you do run a deficit," he said. "When you have modest growth,we have modest growth this year, we will have modest growth, you don't return the country into deficit."

Trudeau has argued that Harper's own record of deficit spending means the Conservatives can't be trusted to balance the budget if re-elected.