The MP for Similkameen–South Okanagan–West Kootenay says she’s concerned with the size of the deficit in the latest federal budget and doesn’t think the new spending it contains will do much to ease the cost of living for her constituents.
The $78 billion deficit announced this week by Mark Carney’s government “is a lot more than the prime minister promised,” Helena Konanz said in an interview. “And we’re just worried about affordability for just everyday people.”
Konanz said with the federal Liberals, the deficit has “always been more than we expect.” When Carney was on the campaign trail in the spring, he suggested running a deficit of around $62 billion.
“It’s just getting to be so that we’re paying more on debt interest than we are on our health care now,” the Conservative said.
In 2024-25, the federal government projected spending on debt servicing would be $53.8 billion, while federal health transfer payments were projected at $52.1 billion.
“Households can’t keep increasing their credit card debt, they can’t increase in their debt because they know there’s a limit to that,” Konanz said. “And there seems to be no limit in how the Liberals spend money. And they’re the ones that got themselves into this mess.”
Konanz said she worries deficit spending will increase the cost to do business and the cost for consumers at the grocery store.
“It’s going to put Canada and Canadians in a difficult position,” she said. “How are people going to pay for food on the table? Are they going to have a job in the next little while? Are businesses going to be able to hire or even to keep the employees they have already?”
Konanz pointed to the indefinite closure of the Interfor sawmill in Grand Forks as one example. The company has blamed economic uncertainty and U.S. tariffs.
“This is happening all over Canada and British Columbia, and I’m not sure this government has set us up to be ready for that,” Konanz said.
The budget contains $141 billion in new spending over the next five years, but also $51 billion in cuts and savings. The civil service is expected to be reduced by 40,000 positions.
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