Harper & Flaherty tip Canada into deficit

7 posts / 0 new
Last post
Lard Tunderin Jeezus Lard Tunderin Jeezus's picture
Harper & Flaherty tip Canada into deficit


Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

[url=http://www.cbc.ca/money/story/2008/07/25/fedfinance.html?ref=rss&loomia_... government runs $517M deficit in April, May [/url]


The federal government ran a deficit of $517 million over April and May, the first two months of the current fiscal year, mainly due to lower corporate income tax and GST revenues.

Over the same time period last year, the government ran a $2.8 billion surplus.

The federal finance department said Friday that during this April and May revenues declined by $1.6 billion, or 4.1 per cent.

The revenue estimates for the first two months of the year include the impact of tax reduction measures for people, businesses and the GST.

Corporate tax revenue fell by $1.1 billion, or 16.6 per cent, from the same two months of last year.

GST revenues dropped by $1 billion, or 20.9 per cent, partly as a result of the one percentage point reduction in the GST rate, which was effective Jan. 1.

Spending on programs rose by $2.1 billion, or seven per cent, on higher transfers and other expenses.

Toby Fourre

I believe this deficit is deliberate. Now they can cut social programs and claim that there is no money.

Sean in Ottawa

Flaherty comes from the Ontario cabinet that included John Snobelen whose prescription for education was to create a crisis so that people would accept their solution-- he actually said this.

It is believable that they would break the finances of the country for idealogical reasons.


This was brought up before. Monthly deficits happen in otherwise surplus years just because of how the accounting's done. It's unlikely that the federal government are going to be in a deficit position this year because of the $4 billion sale of mobile phone spectrum. Next year might be more difficult.

M. Spector M. Spector's picture


Originally posted by Doug:
[b]This was brought up before.[/b]

Yes, we [url=http://www.rabble.ca/babble/ultimatebb.php?ubb=get_topic&f=1&t=007403]al... have a thread on this story.[/url]



Originally posted by M. Spector:
[b]Yes, we [url=http://www.rabble.ca/babble/ultimatebb.php?ubb=get_topic&f=1&t=007403]al... have a thread on this story.[/url][/b]

That's correct. Closing this up. Please post in the existing thread.

Topic locked