Federal budget 2016: Justin Trudeau defends bigger deficit, First Nations funding

Prime Minister JustinTrudeauisdefending his government's choice to run a much-higher-than-promised$29.4-billion deficit in the coming fiscal year, in addition to the fundingplan for First Nations, which one critic says doesn't allot enough money soon enough.

• Ottawa forecasts $29.4B deficit with lots more red ink to come
• Liberals push deficit to spend big on families, cities

The bigger deficit is the result of an increasingly slumpingeconomy, Trudeau said.

"We promised about $10 billion in new investment and we're bringing forward about $11 billion of new investment," Trudeautold Robyn Bresnahan, host of CBC Radio's Ottawa Morning,on Wednesday."It's that the economy has gotten significantly worse."

The Liberals have a mandate from Canadians to invest, rather than cut, Trudeau said.

"The promise I made was to invest in the future of this country. That's what Canadians told me we neededand we were going to do it responsiblyand that's exactly what we're doing," he said.

"We're being absolutely open and transparent with Canadiansthe way we promised to be, not to try and force ourselves back to budget balance to keep an electoral promise, but to respond to what the economy actually needs."

First Nations funding

Asked to respond to concernsthe budget doesn't do enough in the short term to address funding inequities for First Nations, Trudeau said relationships have to be rebuilt to allow First Nations to be leaders on the issue.

• Liberal budget includes billions in new spending for aboriginal people
• Liberal government under pressure to deliver funding for First Nations

About $8.4 billion in spending for First Nations is earmarked for the coming five years. Much of it falls after the next election, according toCindyBlackstock, president of the First Nations Child andFamily Caring Society, who saidthat puts the funding at risk and does not address thedepths of inequity faced by kids on reserve.

"I think people need to look closely at what they're actuallyspending and when," she said. "The biggest investments on theFirst Nations file are after the next election."

Trudeau said Wednesdayit will take more than money to address inequities properly.

"The fact is, we're on a path right now to do this responsibly and realistically. Because as we understand, the challenge isn't only a question of money. The question is around governance, around building the right partnerships so First Nations can lead on First Nations education. That was where Mr. Harper had failed a few years ago.

"We have to make sure that it's done right, and that means building a proper partnership with indigenous communities that haven't led on this. They've been told by the government that this is the money you have, this is how you're going to spend it," he said.

"We need to renew that relationship in a respectful way, and that's why we're getting to work with people ... properly."

Trudeau on First Nations funding

8 years ago

Duration 3:09

Prime Minister Justin Trudeau spoke with Ottawa Morning Host Robyn Bresnahan

At war with Islamicradicals?

Asked whether we're at war with Islamicradicals afterthe attacks in Brussels,Trudeau said there's "certainly a tremendous amount that Canada needs to do" in the fight.

• World leaders condemn Brussels bombingattacks
• ISIS airstrikes by Canada to end by Feb. 22, training forces to triple
• Chronology: Canada's involvement in the fight against ISIS

But he said "awar is something that can be won by one side or the other, and there is no path for ISILto actually win against the West.They want to destabilize, they want to strike fear.

"They need to be stamped out, they need to be pushed back against, but that happens both by actions that we have taken in the West, but also by supportive people on the ground. That's why our new mission, which is much more focused on empowering locals on the ground on a military level, on a humanitarian level, on a refugee level, is going to be an extraordinarily strong piece of the coalition's fight against ISIL."

Trudeau on Brussels Attacks

8 years ago

Duration 1:18

Prime Minister Justin Trudeau spoke with Ottawa Morning host Robyn Bresnahan

• Review the live blog of Trudeau's interview here.