Former Bank of Canada Governor David Dodge believes that the federal budget for 2024, which Deputy Prime Minister and Finance Minister Chrystia Freeland will present today, Tuesday, is likely to be the worst budget "in decades.

Dodge stated during a press conference: I believe it is likely to be the worst budget since former Finance Minister Marc Lalonde's budget in 1982, and it will guide us in the wrong direction regarding how to move forward in increasing Canadians' income and actually making Canadians feel better in the medium term."

During a time of rising interest rates and inflation, the federal budget 1982-1983, during then-Prime Minister Pierre Elliott Trudeau's tenure, became a subject of political outrage over spending, taxes, and wage restraint measures included within it.

Dodge, who was Governor of the Bank of Canada from 2001 to 2008, also pointed to strong indicators suggesting that in order to help finance nearly $40 billion in new spending announced previously without increasing the deficit, the federal government may impose some form of individual wealth tax or excess profits tax on wealthy corporations.

Freeland will present the budget in the House of Commons on Tuesday afternoon, pledging a plan focused on "intergenerational fairness."

Dodge said: I believe there is a real possibility that they will do exactly the wrong thing and tax the very people and companies that will be making the investments and will actually lead to increased income.

He fears that wealth taxes could slow down growth, and he prefers that the federal government focus on increasing savings rather than raising taxes.

Dodge also expressed doubts about the effectiveness of the Liberals' plans to address the supply side of the housing crisis in Canada.