Chrétien budget was a reaction to Trudeau's the fist spending habits. Compounding the problems was the increase in interest rates to about 18%. In addition to slashing spending and transfer payments to the provinces Chrétien benefited from rapidly declining interest rates that plagued the previous conservative government.

Now we have the sequel in the Trudeau the second  government. So we will eventually have another round of massive spending cuts to help pay for rising interest rates. History repeats itself.