OTTAWA–An independent parliamentary review of the Harper government's finances concludes the federal Conservatives are likely to run budget deficits "in the near term," possibly beginning this year.
The report by Kevin Page, the new Parliamentary Budget Officer, says the weaker economic outlook poses a risk to the government's attempts to achieve its "short-term and medium-term fiscal targets."
Assuming no changes in Finance Minister Jim Flaherty's policies, "the downgraded economic outlook suggests the government would record modest and temporary deficits in the near term,"according to the analysis released this morning.
While a budget surplus is still possible this year, the report warns the negative impact on government revenues because of the turmoil on financial markets is not yet known.
"As a result, a deficit for this (2008-09) fiscal year is a distinct possibility."
Page says the deterioration of the federal government's financial picture in the first nine months of 2008 is not so much the result of the weakened economy as Flaherty's policies, particularly the latest reduction in the GST tax and reduced corporate income taxes. This has caused federal revenues to decline by $353 million in the first nine months of this year.
The budget office projects a budget deficit of $3.9 billion in 2009-10, although it adds that, if the economic downturn proves worse than expected, next year's federal deficit could hit $14 billion.
The budget office was created in 2006 to provide independent fiscal forecasts for parliamentarians. This is Page's first budgetary study.
Toronto Star
Gee....sounds a little worse than the 11 billion the cons said the Libs would run even though that number was completely made up out of thin air.....sort of like the air between a cons ears.:lol:
Why is it cons like putting government into deficit again and again and again?
The report by Kevin Page, the new Parliamentary Budget Officer, says the weaker economic outlook poses a risk to the government's attempts to achieve its "short-term and medium-term fiscal targets."
Assuming no changes in Finance Minister Jim Flaherty's policies, "the downgraded economic outlook suggests the government would record modest and temporary deficits in the near term,"according to the analysis released this morning.
While a budget surplus is still possible this year, the report warns the negative impact on government revenues because of the turmoil on financial markets is not yet known.
"As a result, a deficit for this (2008-09) fiscal year is a distinct possibility."
Page says the deterioration of the federal government's financial picture in the first nine months of 2008 is not so much the result of the weakened economy as Flaherty's policies, particularly the latest reduction in the GST tax and reduced corporate income taxes. This has caused federal revenues to decline by $353 million in the first nine months of this year.
The budget office projects a budget deficit of $3.9 billion in 2009-10, although it adds that, if the economic downturn proves worse than expected, next year's federal deficit could hit $14 billion.
The budget office was created in 2006 to provide independent fiscal forecasts for parliamentarians. This is Page's first budgetary study.
Toronto Star
Gee....sounds a little worse than the 11 billion the cons said the Libs would run even though that number was completely made up out of thin air.....sort of like the air between a cons ears.:lol:
Why is it cons like putting government into deficit again and again and again?
