Liberals fiscal update: Billions more in deficits this year and next


spaminator
+3
#1
Liberals fiscal update: Billions more in deficits this year and next
Canadian Press
Published:
December 16, 2019
Updated:
December 16, 2019 3:44 PM EST
OTTAWA — Canada’s federal budget deficit will be billions of dollars deeper than it was supposed to be this year and next, the Finance Department says, as the Liberals promise to keep spending to keep the economy humming.
The question is how much more of that spending the treasury can handle.
The figures released Monday morning show that the Liberals’ projected deficit of $19.8 billion for this fiscal year, a 12-month period ending in March, is now slated to hit $26.6 billion. And next year’s deficit is expected to be $28.1 billion, before accounting for promises the Liberals will unveil in their 2020 budget.
The Liberals’ election platform projected four years of deficits of more than $20 billion, including almost $27.4 billion in the upcoming fiscal year that begins in April 2020. So the current projection for next year is already $700 million higher.
The Finance Department said the deeper deficit is largely driven by changes to how employee pensions and benefits are calculated — a hit that grows when interest rates are low but could drop sharply when interest rates rise — but also accounts for a tax break that takes effect on Jan. 1.
But the Liberals’ preferred measure of the state of federal finances isn’t raw dollars but the debt-to-GDP ratio, which calculates the deficit relative to the size of the economy. The latest projections say that figure will keep improving, if not as quickly as it was supposed to.
Finance Minister Bill Morneau told reporters Monday that the government needed to continue “to invest at an appropriate level” to keep the economy moving and implement promises while keeping expenses in check.
“Nobody said it was going to be easy,” he said.
“Our challenge will be to continue to grow the economy and make sure we have the capacity to make the investments we want to make for Canadians.”
Morneau also said the Liberals will work with opposition parties on spending plans.
The Liberals need enough opposition votes to get their budget approved next year without a majority of seats in the House of Commons.
TD Economics, in a note to clients, said that situation would likely lead to “more than a few changes to revenue and expenditure policies.” BMO chief economist Douglas Porter wrote in his own note that there is now “little room for big, bold new initiatives” in the upcoming budget unless the Liberals plan to go deeper into deficit.
Deeper deficits won’t get support from the Opposition Conservatives, who called for a plan to phase out the deficit over the medium term.
Conservative critic Pierre Poilievre said the Liberals are almost certain to add more debt to implement their campaign promises, and blow off their promise of keeping the debt-to-GDP ratio on a downward track.
“So what fiscal anchor is now left for this government?” Poilievre said.
“They are squandering our country’s good fortune that they inherited. They are putting our economy on a dangerous track to the future and we need as Conservatives, we need to stand up, fight back and win.”
NDP critic Peter Julian said the Liberals needed to reduce tax breaks for wealthy Canadians and corporations to find the money for social programs like dental care.
“The government has to stop massive handouts to the very, very wealthy in the most profitable corporations and, in doing so, that then creates that fiscal room to actually make these investments that can make such a profound impact on people’s lives.”
The Bloc Quebecois criticized the update for few measures to help Quebec weather any economic slowdown.
Economic growth is expected to be 1.7 per cent this year and 1.6 per cent in 2020, after weakness late last year and early this year, particularly in the mining and oil-and-gas sectors. The projections would make Canada’s the second-fastest-growing economy among G7 countries, behind only the United States.
Higher-than-anticipated personal and corporate income-tax revenue might “entirely offset” increased spending from the 2019 budget, the financial update says. Federal officials are also promising a spending and tax review to find $1.5 billion in savings starting next fiscal year, which the government booked in Monday’s update.
At the same time, revenues will decline for excise taxes and duties this year — largely from the Liberals’ lifting retaliatory tariffs on American steel and aluminum earlier than they planned after making progress in a trade dispute — and over the coming years from “lower expected growth in taxable consumption.”
http://youtube.com/watch?v=iE3I8-w-Aa8
http://torontosun.com/news/national/...-year-and-next
 
taxslave
Free Thinker
+3
#2
Up spending up taxes and destroy the economy all st once. Quite the leader.
 
pgs
Free Thinker
+1
#3
Just not ready .
 
Hoid
#4
Every province in Canada is in ottawa with their hands out.

How could it help but go up?
 
Jinentonix
No Party Affiliation
+4
#5  Top Rated Post
Quote: Originally Posted by Hoid View Post

Every province in Canada is in ottawa with their hands out.

How could it help but go up?

Yeah, it's got nothing to do with leftist assholes like you working hard to sabotage Canada's resource economy in the name of foreign interests.
 
Hoid
#6
well I don't like to brag....
 
taxslave
Free Thinker
+2
#7
Not many people like to brag about being an asshole. Except you and cliffy.
 
petros
+3
#8
Quote: Originally Posted by Hoid View Post

Every province in Canada is in ottawa with their hands out.
How could it help but go up?

Almost every Province. SK's Moe went with a buttoned and sat on wallet not an open hand.
 
B00Mer
No Party Affiliation
+4
#9
 
Twin_Moose
Conservative
#10
Liberal budget could focus more on personal happiness, less on country's financial condition
 
petros
+2
#11
Quote: Originally Posted by Twin_Moose View Post

Liberal budget could focus more on personal happiness, less on country's financial condition

Income tax cut will cost $2.6 billion more than reported and top earners could benefit the most: PBO
BY THE CANADIAN PRESS
ORIGINALLY PUBLISHED: JAN 29, 2020

The tax break, which took effect Jan. 1 and is to be phased in over four years, increases the amount someone can earn before...
National Post


OTTAWA — Some of the country’s highest earners could end up getting more benefit from the Liberals’ new income-tax cut than those at the lower end of the income scale, the federal spending watchdog says.

A report Tuesday from the parliamentary budget office says Canadians making between about $160,000 and $227,500 will, on average, save about $257 a year in taxes once the tax cut is fully implemented in 2023.

That’s more than the $211 the PBO expects to be saved by those making around $51,000.
 
Hoid
#12
Quote: Originally Posted by petros View Post

Income tax cut will cost $2.6 billion more than reported and top earners could benefit the most: PBO
BY THE CANADIAN PRESS
ORIGINALLY PUBLISHED: JAN 29, 2020

The tax break, which took effect Jan. 1 and is to be phased in over four years, increases the amount someone can earn before...
National Post


OTTAWA — Some of the country’s highest earners could end up getting more benefit from the Liberals’ new income-tax cut than those at the lower end of the income scale, the federal spending watchdog says.

A report Tuesday from the parliamentary budget office says Canadians making between about $160,000 and $227,500 will, on average, save about $257 a year in taxes once the tax cut is fully implemented in 2023.

That’s more than the $211 the PBO expects to be saved by those making around $51,000.

^ this is the part where they cry about a liberal tax cut that "might" help out the rich more than the poor after 3 years of cheering about the Trump tax cut.

Because in Canada the rich having more after tax income to invest is not the wonderful plan that it is in America.
 
Jinentonix
No Party Affiliation
+3
#13
Quote: Originally Posted by Hoid View Post

^ this is the part where they cry about a liberal tax cut that "might" help out the rich more than the poor after 3 years of cheering about the Trump tax cut.

Because in Canada the rich having more after tax income to invest is not the wonderful plan that it is in America.

^^^ This is the part where Hoid cries about Trump but still says nothing about Groper's growing deficits as he hands millions of taxpayer dollars to multi-billion dollar companies with huge profits.
 
Hoid
#14
Quote: Originally Posted by Jinentonix View Post

^^^ This is the part where Hoid cries about Trump but still says nothing about Groper's growing deficits as he hands millions of taxpayer dollars to multi-billion dollar companies with huge profits.

Buy stock in those companies and be a winner instead of a whiner.
 
petros
+3
#15
Quote: Originally Posted by Hoid View Post

^ this is the part where they cry about a liberal tax cut that "might" help out the rich more than the poor after 3 years of cheering about the Trump tax cut.
Because in Canada the rich having more after tax income to invest is not the wonderful plan that it is in America.

Earth to Hoid.
 
petros
+3
#16
Quote: Originally Posted by Jinentonix View Post

^^^ This is the part where Hoid cries about Trump but still says nothing about Groper's growing deficits as he hands millions of taxpayer dollars to multi-billion dollar companies with huge profits.

Not the mention inevitable Canadian recession coming soon.
 
Mowich
Conservative
+2
#17
Quote: Originally Posted by pgs View Post

Just not ready .

I'd amend that to ....... still not ready, pgs.
 
Tecumsehsbones
#18
Quote: Originally Posted by Jinentonix View Post

^^^ This is the part where Hoid cries about Trump but still says nothing about Groper's growing deficits as he hands millions of taxpayer dollars to multi-billion dollar companies with huge profits.

Enormous deficits will Make Canada Great Again!

Hey, you LOVE it when Donny Dodger does it.
 
Hoid
#19
Quote: Originally Posted by Jinentonix View Post

^^^ This is the part where Hoid cries about Trump but still says nothing about Groper's growing deficits as he hands millions of taxpayer dollars to multi-billion dollar companies with huge profits.

This is Canada's federal debt to GDP

Look how it grows
 
Twin_Moose
Conservative
+2
#20
What will that graph look like when the recession hits within a year or so?
 
petros
+2
#21
Within a few months.
 
taxslave
Free Thinker
+1
#22
Quote: Originally Posted by petros View Post

Income tax cut will cost $2.6 billion more than reported and top earners could benefit the most: PBO
BY THE CANADIAN PRESS
ORIGINALLY PUBLISHED: JAN 29, 2020
The tax break, which took effect Jan. 1 and is to be phased in over four years, increases the amount someone can earn before...
National Post
OTTAWA — Some of the country’s highest earners could end up getting more benefit from the Liberals’ new income-tax cut than those at the lower end of the income scale, the federal spending watchdog says.
A report Tuesday from the parliamentary budget office says Canadians making between about $160,000 and $227,500 will, on average, save about $257 a year in taxes once the tax cut is fully implemented in 2023.
That’s more than the $211 the PBO expects to be saved by those making around $51,000.

AS it should be since the rich pay way more than their fair share of taxes.
 
taxslave
Free Thinker
+2
#23
Quote: Originally Posted by Hoid View Post

This is Canada's federal debt to GDP
Look how it grows

And is totally irrelevant. WHat matters is the total debt which is growing in leaps and bounds.
 
DaSleeper
+4
#24
Quote: Originally Posted by taxslave View Post

And is totally irrelevant. WHat matters is the total debt which is growing in leaps and bounds.

To quote the shiny pony
The budget will balance itself!
https://www.youtube.com/watch?v=5VgNEsWx9pI
 
taxslave
Free Thinker
+3
#25
Just as soon as we get a responsible government.
 
Jinentonix
No Party Affiliation
+3
#26
Quote: Originally Posted by Hoid View Post

Buy stock in those companies and be a winner instead of a whiner.

He pathetically bleats, hoping no one notices that he gave Groper's deficits a free pass whilst whining about some foreign country's deficits.
 
Hoid
#27
Quote: Originally Posted by Jinentonix View Post

He pathetically bleats, hoping no one notices that he gave Groper's deficits a free pass whilst whining about some foreign country's deficits.

I gave no one a free pass.


I merely pointed out the federal debt has undergone no big changes under Trudeau other than to come down a bit
 
Jinentonix
No Party Affiliation
+3
#28
Quote: Originally Posted by Tecumsehsbones View Post

Enormous deficits will Make Canada Great Again!

Hey, you LOVE it when Donny Dodger does it.

I do? By all means do quote me where I said Trump's deficits are awesome. Go ahead, I can wait.
 
Girth
+2
#29
Quote: Originally Posted by Twin_Moose View Post

What will that graph look like when the recession hits within a year or so?

Better yet, what will the graph look like when Hoid gets his wish, and the Oil and Gas industry is shut down. If you observe the graph, the deficit dramatically increased once the downturn in the O & G sector occurred at the end of 2014.
 
Jinentonix
No Party Affiliation
+3
#30
Quote: Originally Posted by Hoid View Post

I gave no one a free pass.


I merely pointed out the federal debt has undergone no big changes under Trudeau other than to come down a bit

No, you said "Buy stock in those companies and be a winner instead of a whiner". As if that excuses Groper handing millions to billion dollar companies while running massive deficits.
 

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