Federal deficit still looking set to come in well under $26bn

The federal deficit was $0.6 bn in December 2012, up slightly from the $0.5 bn recorded in December 2011, the Finance Department revealed today. Still, red ink accumulated since the beginning of the fiscal year, in April, amounted to $13 bn, below the $16.1 registered over the same period in 2011-2012.

Stephen Gordon noted a couple of weeks ago how the monthly deficit data available until then were difficult to square with the government’s estimate of a $26 bn deficit by fiscal year-end. April-to-November spending and revenue patterns, he wrote, would indicate the overall deficit for 2012-2013 will be considerably lower.

Today’s December data show very much the same picture.




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Federal deficit still looking set to come in well under $26bn

  1. Why this sounds wonderful! Like we’ve made a huge advance!

    Except we were promised we wouldn’t have a deficit of any kind….ever….!

    And yet we ended up with the biggest deficit in our history instead!

    Plus….to fix this mess….dear leader is cutting back on the unemployed, veterans, refugees in trouble etc…..but merrily toting up fighter-jets….ka-ching, ka-ching…..

    And while we were told we were the ‘envy of the G7′ and that everyone was trying to imitate us…..it turns out none of that was true and that we are in fact labelled right here in Macleans today as the ‘Deadbeat nation’.

    http://www2.macleans.ca/2013/02/19/the-deadbeat-bunch-2/

    Dear Leader needs his ‘economics’ degree revoked….and the Cons should never again be credited with financial ability!

    • I get confused so easily… do you get your talking points from the NDP or the Liberals?

      • Most likely it’s just the voices in her head.

      • Gosh, you mean Harper didn’t say those things…..on national TV at that?

    • It’s funny how you Liberals on one-hand try to take credit for the stimulus program back in the day, and then at the same time try to blame Harper for the deficits it created. You can’t have it both ways.

      • Stop it Rick. No more lying and trolling.

      • I thought the stimulus program supposedly stopped over a year ago, so if that’s the case, I’m unsure how you can claim it’s responsible for a current deficit.

        Beyond that, considering that the GST cut was Mr. Harper’s idea, and the stimulus program the opposition’s idea, they actually *can* have it both ways. Mr. Harper had the idea that put us into a structural deficit, and the opposition had the idea that helped keep our economy from cratering, which was forced on Mr. Harper with the threat of a non-confidence vote bringing on another election.

      • Everyone wants to have it both ways. The Tories want their base to believe that they were FORCED by the dastardly opposition into all this stimulus spending, while at the same time littering the airwaves with ads taking credit for the awesome stimulus program.

      • try to blame Harper for the deficits it created

        The Tories took us back into deficit BEFORE the stimulus spending started. We were, in fact, back in deficit before the RECESSION started.

      • According to Harper’s 2009 budget, he is cutting taxes by $44.4B/yr. The stimulus spending (aka Economic Action Plan) was $40B over two years (2009-2010.) That is long gone and not a part of the current deficit.

        The reason Harper turned a $14B surplus to a $30B deficit is because of his reckless tax cuts. The reason he is gutting spending, slashing benefits and downloading huge costs onto the provinces (cutting the Canada Health Transfer in half,) is because of his fiscal mismanagement.

  2. When Flaherty was finance minister in ON he said a $5.6B structural deficit was a balanced budget. No doubt in 2015, he’ll say he has balanced the budget. But when the opposition forms the government they will likely find Enron-style creative accounting covering up a whopping structural deficit.

    Given Harper has cut taxes by $44.4B/yr and GDP growth is anemic it is impossible for the Conservatives to be anywhere near a balanced budget. It’s all smoke and mirrors.

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