Joined: 02 Mar 2009
Posts: 8347 votes: 3
Posted: Sat Dec 23, 2017 10:32 am Post subject: finance report projects deficits until 2040
( unfortuently not a surprise , deficit's until 2040 and $1 trillion in debt by 2035 )
Canada projecting deficits until 2040, finance report reveals
December 22, 2017
December 22, 2017 5:19 PM EST
Toronto SUN ›
Finance Minister Bill Morneau and Prime Minister Justin Trudeau hold copies of the federal budget on their way to the House of Commons in Ottawa, Wednesday, March 22, 2017. THE CANADIAN PRESS/Adrian Wyld
The federal government is projecting deficits until at least 2040, a finance report quietly released Friday reveals. The federal debt is also set to hit $1 trillion for the first time in 2035.
These shocking figures are actually an improvement upon the long-term economic and fiscal projections released this time last year. The goal of such reports is to take current government spending trends and show what will happen if they continue in later years.
Canada is on track to run a $10.4 billion deficit in 2040 and a $10.9 billion surplus in 2045. The table provides figures for every five years, suggesting the books will return to the black sometime around 2042.
Last year’s report revealed deficits until the 2050s and warned that the spending path the Trudeau Liberals put the country on “would be sufficient to put at risk the fiscal sustainability of the federal government.” The new report sounds no such alarms.
Much of the rosier outlook is due to a combination of improved economic growth and lower deficit numbers. While Prime Minister Justin Trudeau campaigned on running deficits of no greater than $10 billion per year, he quickly broke that pledge. The 2016 fall economic update – which was used to calculate last year’s damning report – pegged the 2017/2018 deficit at a whopping $27.8 billion.
However, that number is now down to $19.9 billion. It’s still double the amount the PM promised, but not enough for the finance department to issue a warning that it has put the whole government at risk of collapse. The other good news is the federal debt-to-GDP ratio is set to decline quicker.
Instead of offering scary warnings, the new report echoes Trudeau’s political rhetoric in saying that “improving the economic participation of groups traditionally under-represented in the labour market, including women, Indigenous peoples, older workers, newcomers and persons with disabilities, is key to Canada’s long-term fiscal and economic performance.”
Time will tell if these somewhat improved numbers are enough to assuage the concerns of Canadians. An Angus Reid Institute poll released earlier this month showed Trudeau’s disapproval rating surpassing his approval for the first time since becoming PM. The poll also revealed that concerns about “deficit/ spending” had considerably increased over the past year to be tied with the economy as Canadians’ number one concern.
The report stresses that “the impact of future government is not accounted for”. This means the numbers could easily worsen again if the government make unwise choices in the years ahead.
These projections mean almost nothing, except that it demonstrates what we have already gotten into, thanx to the pompous lightweight that presently occupies the throne.
The thing is, the spending will only increase with time. It will only be worse in 2040 -- look at what the same bunch did to Ontario. Do you think Wynne wouldn't like to balance the budget? She feels she can't because in the politicians' playbook, if you cut benefits, it costs you political support.
That's the treadmill we're on, and the same bunch are now calling the shots in Ottawa.
In my mind, the big question of the moment is how the Canadian government will react to the Trump budget. It should now be apparent that the Trump administration is finding its legs. Expect NAFTA to be scrapped, thanks again to the bungling of the Liberals. They should have let Mexico deal with its own problems, and backed Trump. Instead, our nancy-boy PM went prancing about posing as the leftish alternative to Trump. Just plain dumb.
I honestly think Justin Trudeau is like a child who puts his own self-image ahead of the national interest. But that doesn't matter. What matters is that we need about a 180 degree change in policy as soon as possible. An administration whose top priority is the narcissism of its leader isn't likely to admit it was wrong ... about anything. Even going to a Moslem leader's palace to celebrate Christmas.
The country isn't experiencing, first hand, the emergency we face, but it is there. And it will probably end up being worse than the predictions.
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