Friday, November 21, 2008

Hey Deficit Jim where have you bin Deficit Jim

As most Ontarians have been expecting, our Federal Finance Minister is about to the bring back federal deficits as early as this fiscal year, at least according to the government's own budget watchdog.
The federal Parliament's budget watchdog, Kevin Page, warned on Thursday Canada is at risk of recording deficits starting this fiscal year, and the annual shortfall could reach nearly $14-billion next year as it believes its worst-case scenario represents a "more likely" outcome.
Part of the reason for this years decline of course was Flaherty’s much heralded 1% cut to the GST which has dramatically reduced government revenues in this critical year.

However you could tell the wheels were going to fall off, back here on October 8th when Deficit Jim assured the country that he had everything under control.
There will be no deficit on his watch, even on a temporary basis, Finance Minister Jim Flaherty said Wednesday.

In responding to the worsening global financial crisis that has slowed economic growth in Canada and elsewhere, “we'll do what we have to do, so long as we remain economically prudent. We're sure not going to run a deficit ... We will maintain a surplus in Canada and we will continue to pay down debt.”

Asked if running even a small deficit would be bad in these difficult times, Mr. Flaherty said flatly: “Yes, it would be.”

In other news The White Album turned 40 years old this week.

References: Globe here , Financial Post here , and Winnipeg Sun here .

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