In Canada, the Liberal government has tabled its 2022 budget, the second by Finance Minister Chrystia Freeland. Presented as a responsible, prudent plan, the budget does little to stray from market orthodoxy, offering policies focused on a handful of priorities including dental care, housing, climate, and military spending.

In her address to the House of Commons, Freeland cited a job boom, a drop in unemployment, and real GDP growth as evidence that “Canada has come roaring back.” In a remark reminiscent of Bill Clinton’s 1996 State of the Union pronouncement that “the era of big government is over,” Freeland noted, “Our ability to spend is not infinite. The time for extraordinary COVID support is over.”

Declaring her party’s intention to return to business as usual, Freeland affirmed that “we will review and reduce government spending, because that is the responsible thing to do.” That means the Liberals are focused on a declining debt-to-GDP ratio and shrinking deficits, with an eye to paying down the debt. Understanding the budget as a faithful restoration of fiscal thrift provides a useful frame through which to unpack its details.