Kevin Page: How Carney can pay for promise to hike defence spending…

In short, we will need to grow the economy at a higher rate to generate more revenues (increase productivity). We will need spending reviews of government operations and current grant and contribution and tax expenditure programs to increase fiscal room for reallocation. We will need a tax increase in the years ahead once the economy is on a better footing. We will run higher budgetary deficits over the short term. The size of government will likely have to grow to levels we have not seen since the early 1980s if we are to maintain our social security system…