The key litmus test for the Harper governments 2013 budget was always going to be how realistic it was with respect to achieving a balanced budget by 2015-16. The governing Tories have staked both their economic and political credibility on being able to balance the budget. The current plan, which mirrors previous budgets, relies on controlling the growth in spending and hoping revenues increase sufficiently to balance the budget.
federal budget
November 15, 2012
2:00AM
While some economists take great satisfaction when their forecasts come true, I am not in that camp.
As Terence Corcoran noted on this page Wednesday (On track for more deficits), for the past several years my colleagues and I have warned that the federal government's plan to balance the budget has been based on risky projections - optimistic forecasts of revenue growth (averaging 5.6% per year) and unrealistic plans for spending restraint (average increases of just 2.0% per year).
April 5, 2012
2:00AM
Canada's Conservative government deserves praise on a number of fronts. Since coming to power, the Tories have ended the reflexively relativist approach to foreign policy, tackled supposedly politically sensitive immigration issues and understood and promoted the need for private-sector jobs, especially in the energy sector.
Thus, when David From wrote, in his Saturday National Post column, that under Stephen Harper, Canada can fairly claim to be the best-governed country among advanced democracies in the world, he was not far off the mark.
Thus, when David From wrote, in his Saturday National Post column, that under Stephen Harper, Canada can fairly claim to be the best-governed country among advanced democracies in the world, he was not far off the mark.
April 1, 2012
2:00AM
Ever since the last recession, Canadians have been informed by pundits and the political class that stimulus spendingperhaps better labelled as binge spendingwas critical to Canadas economic recovery.
But extra government spending had little to do with Canadas exit out of the recession. The recession ended in mid-2009; it was only about then that federal and provincial governments started spending extra (borrowed) stimulus cash.
March 31, 2012
2:00AM
There it was on the front page of The Globe and Mail: $5.2-billion [in] total spending cuts. The Toronto Star screamed: Tories slash spending in fiscal overhaul, while CTV proclaimed: Budget to cut spending nearly $6-billion.
Perhaps they read a different budget than the one we found on the Department of Finance's website. Here's what the Conservatives' budget actually stated: The results of the government's review of departmental spending amount to roughly $5.2-billion in ongoing savings.
That's savings, folks, not cuts.
March 20, 2012
3:00AM
With economic uncertainty lurking around every corner, its critical that governments across Canada show fiscal discipline and put forth prudent budgets.
Here in B.C., Finance Minister Kevin Falcon reassured British Columbians that his governments 2012 budget was built on fiscal discipline and lays a firm foundation for the future. Falcon even warned of the perils of additional government taxes, spending and borrowing, calling such measures potentially catastrophic.
Here in B.C., Finance Minister Kevin Falcon reassured British Columbians that his governments 2012 budget was built on fiscal discipline and lays a firm foundation for the future. Falcon even warned of the perils of additional government taxes, spending and borrowing, calling such measures potentially catastrophic.
March 6, 2012
2:00AM
On Monday, Finance Minister Jim Flaherty held his traditional pre-budget consultation with a number of private-sector economists, who all appear to be predicting improved growth in the Canadian economy for the coming year. This no doubt comes as welcome news to the Finance Minister, as he prepares to unveil his next budget on March 29.
But the Finance Minister should not be swayed by these optimistic growth projections; he needs to bring in a budget that will take serious aim at balancing the nation's book.
But the Finance Minister should not be swayed by these optimistic growth projections; he needs to bring in a budget that will take serious aim at balancing the nation's book.
November 16, 2011
2:00AM
When Finance Minister Jim Flaherty announced last week that the Conservative government will miss its target for balancing the budget, he confirmed something that should be obvious to all students of recent Canadian economic history: Crossed-finger revenue forecasts and unrealistic spending growth projections are no basis for sound economic policy.
November 9, 2011
2:00AM
With the release of its economic and fiscal update, the Conservative government finally confirmed it will not meet its 2014-15 target for balancing the budget.
No surprise here.
No surprise here.
June 8, 2011
2:00AM
Mondays federal budget was all political spin. Like in March, when the 2011 budget was first introduced, the Conservatives dubiously titled it: A Low-Tax Plan for Jobs and Growth.
But in reality, the Conservatives plan increases the federal tax take, increases government spending, and fails to provide a truly austere plan to balance the budget. It will, therefore, do little to improve economic growth and create jobs.
But in reality, the Conservatives plan increases the federal tax take, increases government spending, and fails to provide a truly austere plan to balance the budget. It will, therefore, do little to improve economic growth and create jobs.