Posted: Fri Feb 03, 2017 2:44 pm Post subject: Federal Deficit growing to $20 billion annually
Federal deficit not quite as deep as Liberals expected, budget watchdog says
By The Canadian Press — Feb 3 2017
OTTAWA — The parliamentary budget officer says the federal deficit isn't as deep for now as the government expects, largely because the Liberals haven't been able to spend infrastructure money fast enough.
The report released this morning says the federal budget is on track to be $20.5 billion in the red this fiscal year, compared to the $25.1 billion deficit Finance Minister Bill Morneau projected in his November economic update.
The $4.6 billion difference is largely attributed to slower than expected infrastructure spending.
The report also pegs growth in real gross domestic product in 2016 at 1.3 per cent, up one-tenth of a percentage point from projections in the fall, on the back of better-than-expected revenues from exports and more government spending in the first half of last year.
The budget watchdog's report estimates that nominal GDP, the broadest single measure of the tax base, surpassed $2 trillion last year.
This is not reassuring. The part of the deficit spending that might have actually affected employment and the economy is not on target! Their original plan had them only spending $5 billion on infrastructure in total.
Originally -- that is, the lie they told us during the campaign -- they planned to spend up to $8 billion for a couple of years and have the budget in balance at the end of their term. Now they are throwing money at every problem, and going into, deficit to the tune of $20 billion a year instead of $25 billion. Whopee, throw your hat in the air!
They are going into the hole at the rate of $20,000,000,000 a year and they're spending all of that on other things than infrastructure. Why does a country go into debt to pay transfer payments?
We are at the point where the wheels are getting wobbly. Everything for the Liberals now depends on how they fare at the hands of Trump.
Joined: 02 Mar 2009
Posts: 8338 votes: 3
Posted: Fri Feb 03, 2017 2:53 pm Post subject:
I have to agree little has been said about the lack of infrastructure spending , it was a big campaign promise that there was going to be a lot of it to stimulate the economy
and back in 2015 the economy was doing much better , its got much worse especially in oil producing provinces like Alberta , Saskatchewan and Newfoundland . where this kind of spending is really needed
I'm not really sure what infrastructure projects are even scheduled to begin work in Ontario this year ? I'm sure there is some but I'm not sure where or what they are
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