Highlights from Joe Oliver's fiscal and economic update - Macleans.ca

Highlights from Joe Oliver’s fiscal and economic update

Highlights from the finance minister’s annual fall update and five-year projection of the government’s fiscal situation

Frank Gunn/CP

Frank Gunn/CP

OTTAWA – Finance Minister Joe Oliver delivered his annual fall update and five-year projection of the government’s fiscal situation on Wednesday. Here are the highlights:

— A small deficit of $2.9 billion expected for the 2014-2015 fiscal year, the same as projected in the February budget.

— A small surplus of $1.9 billion expected for the 2015-2016 fiscal year, much smaller than the $6.4 billion projected last February mainly because of recent announcements for spending increases and tax cuts.

— Surpluses forecast to grow slowly every year after that: $4.3 billion in 2016-2017, $5.1 billion in 2017-2018, and $6.8 billion in 2018-2019.

— Government has set aside $3 billion in contingency funds every year, including the current fiscal year. If not needed, the money goes towards the debt.

— Lower oil prices this year translated into a $500-million hit to the bottom line in 2014-2015, and $2.5 billion per year over the 2015-2019 period.

— Federal debt will rise slightly to $615.8 billion in 2014-2015 before diminishing gradually over the next five years. As a percentage of the economy, the federal debt in 2014-15 is forecast to be 31.5 per cent of GDP, dropping slowly over the coming years to 24.3 per cent in 2019-2020.

— Overall federal tax burden drops to lowest level in 50 years for now, but personal income tax as a percentage of GDP expected to reach 7.1 per cent next year, up from 6.9 per cent this year, and 7.3 per cent in 2019-2020.

— The government has recommitted to introducing balanced budget legislation, a promise made initially more than a year ago in the 2013 throne speech.

— Economists told Ottawa to expect real growth of 2.4 per cent in 2014 and 2.6 per cent in 2015. Those projections were made in September before commodity prices tanked; the government has had to trim expectations for government revenue.

— The employment insurance account has a $3.8-billion surplus in 2014-2015, $3.9 billion in 2015-2016 and $4.5 billion in 2016-17 — allowing the government to stay in the black despite new spending and tax cuts.

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Highlights from Joe Oliver’s fiscal and economic update

  1. Yep, its all about lies, illusions, deceit for our money. So tax greedy we tax low incomes, minimum wage singles….even so greedy we tariff tax and protectionism on basic foods, clothes….just no end to where the hidden, real and fee taxes are.

    You have to life earn $1,400,000 to pay $700,000 in taxes, $300,000 in fair interest, to buy a $400,000 home that is $200,000 in labour taxes, fees, tariffs and other taxes to build the $200,000 tax-debt out home.

    So busy supporting govmint kids, uncommon good of auto, bank, corporate, union, provincial and buddy bailout schemes, we have become economic slaves of corrupted lobby bought statism.

    No how is that for politically correct? Fact is the system runs on illusions, lies to get your money. Most of Ottawa spending is now on uncommon good.

  2. Seems like Trudeau may be making a dent in Jim Flaherty’s by-election seat in Whitby, Harper is allowing Oliver to spend taxpayers money to politic again, by going after Trudeau in an eCONomic statement. JT is going to win that seat , just wait and see.

  3. The Liberals could MAKE this tax cut ‘fair’ without having to raise taxes simply by reversing it while simultaneously announcing an increase of the CRA basic personal credit from $11,000 to $18,000 so that ALL taxpayers no matter what they make, get an extra $1000 back. Better yet would be to withdraw corporate subsidies while raising the basic personal credit to $24,000 (a sort of working bonus)…..MAKING the corporations EARN their money from the much vaunted market…what a novel idea….instead of having it handed to them on a silver platter by the government.