Budgetary watchdog says federal deficits $35 B higher than Flaherty says

[mentalfloss]

Budgetary watchdog says federal deficits $35 B higher than Flaherty says


OTTAWA — Parliament's budget watchdog says that federal deficits over the next five years could be about $35 billion higher than the estimates from Finance Minister Jim Flaherty's last budget introduced in March.

In a report released Wednesday, Kevin Page, the parliamentary budget officer, explained that the "discrepancy primarily reflects PBO's higher projected operating expenses."

Page also warned in the report that economic growth forecasts of the government might not be as high as it stated in the budget which was never adopted.

Budgetary watchdog says federal deficits $35 B higher than Flaherty says
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[taxslave]

It could also be lower. Time will tell. Anyone that ever ran a business will tell you that forecasts are bull**** anyway. I used to do one for the bank every year, just added 10% to the previous years gross. There is no way that I am aware of to predict how busy you will be in the next year never mind five years down the road.

 

[lone wolf]

Why mess with success? He overlooked stuff as finance minister of Ontario too. Flaherty would be a great caddy.

http://network.nationalpost.com/np/...and-jim-flaherty-dynamic-duo-of-deficits.aspx

 

[Tonington]

There is no way that I am aware of to predict how busy you will be in the next year never mind five years down the road.

They aren't trying to predict...they are forecasting. If you just add 10% to last year, that not really a very good forecast, unless you have reasons to expect 10% more.

No models are true, but some have more value than others, because they provide opportunities to plan for possible scenarios.

 

[PoliticalNick]

Why mess with success? He overlooked stuff as finance minister of Ontario too. Flaherty would be a great caddy.

Kelly McParland: Bob Rae and Jim Flaherty, dynamic duo of deficits - Full Comment

We can give him a new nickname...Foot-wedge Flaherty.

 

[Kreskin]

It could also be lower. Time will tell. Anyone that ever ran a business will tell you that forecasts are bull**** anyway. I used to do one for the bank every year, just added 10% to the previous years gross. There is no way that I am aware of to predict how busy you will be in the next year never mind five years down the road.

I can relate. Set some targets, hope for the best, move the goalposts in mid stream, then measure success against the results of peers and competitors.

 

[Tonington]

I can relate. Set some targets, hope for the best, move the goalposts in mid stream, then measure success against the results of peers and competitors.

If your forecast is based on certain parameters, and the parameters change, then you have to adjust the forecast. Nobody should ever interpret a forecast as a prediction.