Site Search

Custom Search

Friday, July 23, 2010

Canada’s Budget Deficit Narrows 41% in April, May

The mainstream media has been giving a lot of airtime for several months to those who preach about the impossibility of ever balancing the federal budget without raising taxes and/or slashing program spending on health, education and other social services. And all the time Stephen Harper’s government has been insisting that we can grow our way out of deficit within five years by controlling spending for defense, international aid and government operations—and, of course, not having any longer to fund the Economic Action Plan (stimulus program).

“For the April and May together, revenues increased by $2.4 billion, or 7.0 per cent. This gain reflected higher goods and services tax (GST) revenues, personal income tax revenues and other revenues, partially offset by lower corporate and non-resident income tax revenues. Program expenses were down $0.5 billion, or 1.4 per cent, mainly reflecting lower transfer payments. Public debt charges declined by $0.2 billion due to a decrease in the average effective interest rate on the stock of interest bearing debt.”

– Department of Finance

Looks to me as if the Conservatives are on the right track, and recent economic news seems to support their contention that economic growth from our recovery from the recent financial crisis and related recession will go a long way to reduce our budget deficit—just as Finance Minister Jim Flaherty and Prime Minister Stephen have been saying all along.

Our Department of Finance reports today that Canada’s budget deficit narrowed 41 per cent in the first two months of the current fiscal year. In April and May of this year, we recorded a deficit of $4.4 billion, down from $7.5 billion in the first two months of the previous fiscal year.

This is further evidence that in order to discredit the prime minister and his Conservative government, opposition parties and their cheerleaders in the media will contradict and criticize everything the government says and does regardless of whether that misleads and confuses Canadians.

Time and again we have seen government initiatives and assessments rebutted and refuted, often quite disdainfully. And time and again we have seen the prime minister and his government proven right. We here in Canada are fortunate to have as competent a government as we now have.

The role of opposition parties is to oppose and critique, but is it really to tear down and denigrate everything the government does and says? The roll of news media may be to hold governments to account, but is it really to act as a coordinated wing of the opposition parties? If something is in Canada’s best interests, the opposition owes it to Canadians to criticize but not to disparage the governments efforts.

Liberals and New Democrats want to soften Canadians’ resolve to resist all new attempts to raise their taxes so that new socialist programs like a national government-funded daycare program can be implemented. But they’ll not be straight with Canadians. They’ll raise taxes ostensibly to reduce the deficit, but spend the money on social programs that we cannot afford or really need.

 

© 2010 Russell G. Campbell
All rights reserved.

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. The liberals have not been griping about the recovery (or the percieved lack of one).

    Census forms,Pow's,pavilions yes but no concerns about our economy.

    Very telling....

    ReplyDelete
  2. Excellent post.

    ReplyDelete
  3. Well this is really nice blog I found about budget deficit till now.


    Budget Deficit

    ReplyDelete

ShareThis