After two years of stimulus spending and years of tax cuts, Canada's debt has ballooned to $56 billion. Now the Harper government is sharpening the axe. Who will feel the cut? Given the Conservative's position on social spending, they will likely focus on provincial transfers that support healthcare and social welfare.
Meanwhile, the federal government subsidizes oil companies to the tune of $1.4 billion every year, according to the International Institute for Sustainable Development (IISD). It's more if you factor in other fossil fuels such as coal. If the government is looking for ways to pay down the debt, ending fossil fuel subsidies in the 2011-12 budget is a good place to start.
