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Thursday, November 27, 2008

Fiscal and economic update

Today at 4:00 p.m. in Ottawa, federal Finance Minister Jim Flaherty tabled a fiscal and economic update for the 2008/9 fiscal year. No guarantees are promised, but here is a quick overview of the government’s plans:

  • No stimulus package at this time.
  • No deficit this fiscal year and five balanced budget over the next five years.
  • Some relief planned for seniors and pension funds. 
  • Capped salary increases for civil service—annual 2.3 percent for 2008/9, and 1.5 per cent in following three years.
  • Cuts to government departments’ and agencies’ travel and consulting and sale of assets—$15 billion expected to be saved over five years.
  • Cut government per vote subsidy to political parties April 1, 2009.
  • More stimulus may be required in the future, and it may push budget into deficit.

A good small “c” conservative approach in these uncertain times.

According to CTV Newsnet, Liberals and NDP will not support the update (in its current form) so we could see the government fall before Christmas. And rumours are circulating that discussions are underway that would see the opposition trying to form a government should the Conservatives fall.smleaf

4 comments — This is a moderated blog and comments will appear when approved. Please don’t resubmit if your comment doesn’t appear immediately, and please do not post material that is obscene, harassing, defamatory, or otherwise objectionable.

  1. Are opposition parties being set up here ?

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  2. All the official opposition parties would have to form a government together without losing 10 MPs to defections in the process.

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  3. I am listing to the news from Ottawa and am so depressed! I thought that the Harper government would be lacking in lots of domains but I thought that at the least they would have a reasonable policy on the economy. I watch the American markets and by extension the American plans for dealing with this crisis very carefully. I see them saying that immediate action is very important, I see the same in China, and even old staid Europe is getting off their butts and stimulating the economy. But here in Canada we are playing political games! Nothing serious.... we are in the worst crisis for 100 years and they are talking tonight about reducing their pay raise!??

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  4. I would think that inclusion of the bloc in any coup attempt would not be welcomed readily by those outside Quebec,let alone a coup based on maintaining vote subsidy extortion to any political party.The opposition partys had better tread lightly as another election,or tax and spend agendas,may result in an election that is desisive next time.

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