Ottawa's shrinking deficit -

Ottawa’s shrinking deficit

Federal government racks up $7.7 billion in debt over first four months of fiscal year


With the economy slowly recovering from a crippling recession, the federal government’s fiscal situation is showing some improvement. Ottawa’s accumulated deficit is down sharply from last year after the first four months of the current fiscal year—$7.7 billion compared with $18.3 billion. The federal government’s tax revenues were up 10.5 per cent (or $1.9 billion) from last July, while spending fell by $3.6 billion over the same period.

Financial Post

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Ottawa’s shrinking deficit

  1. Its moving in the right direction. Keep going.

    • Right direction for sure but still a VERY LONG WAY TO GO. We still have a large National debt to really work on.

  2. Be careful the Libs want to open up the coffers to more foreign aid. I guess they want the UN seat too.

    • Grow up. Canadians have the fortune of being members of the greatest country in the world. As such, we have an obligation to provide help where we can.

      In any event, exactly how much of the deficit do you think is actually due to foreign aid?

      • "Grow up" = Newspeak for "pay up". Also, how is having earned wealth put us in a position where must submit to charity by government fiat? I'll make it easy for you: just go ahead and advocate slavery, because that's what you do.

        • Well said.

        • The vast majority of Canada's wealth is either ancestral, or from natural resources. You didn't earn it. You have, perhaps, earned your portion of the dividends of ancestral wealth, and fortunate geography. You are as lucky to have been born into it as Zambians have been unlucky enough to be born into their poverty. As such, it is not unreasonable to have a fraction of a percent of your income directed towards those people for whom that fraction will make the difference between life and death.

          But you're right, having people pay a fraction of a percent of their income to poor people is exactly the same as slavery. Well, except in the sense that the government doesn't actually own you, and you can leave at any time. This tendency towards the dramatic is a particularly libertarian trait, and one of the reasons why they aren't taken seriously.

          And spare me the Ayn Rand routine; I get it: slavery, parasites, yada, yada, yada.

          • And spare me the "you don't deserve it" rant. In case you were unaware, the African continent is and has been an energy and resource rich continent. Colonial days are a distant memory and Africans have been in charge of their own affairs for decades. However unlike Canada, they are a train wreck, seemingly unable to raise the standard of living of the average citizen and in fact are going backwards. On top of that the West has poured untold billions into the place only to see it quickly deposited into some dictator's Swiss bank account. Did you notice Mugabe and other criminals lined up in Copenhagen demanding billions be handed over to them to "fix" the environment. Given the option, not one thin dime from me sir, p**s away your own money if it makes you feel morally superior to the rest of us.

          • Too bad there isn't some other way of giving aid that doesn't involve cash hand outs to government… If only there was a way.

            Ah well, f*** the people living there. That's far away, and their ancestors weren't as smart as my ancestors. I didn't have anything to do with the development of my country, but I still feel morally superior to those useless people who had nothing to do with the development of their country. So, f*** 'em. Each and every one of them.

  3. And this is one of the reasons Harper will be reelected, who cares about the census, gun registry, new planes, etc… Most Canadians only want to make sure that the economy is in good shape and improving.

    • Spot on.

  4. That's great! Particularly if the spending includes the G8/G20 bill.

    • Amen to that.

  5. Wonderful! It will be wonderfully amusing to hear what the opposition makes of this good news when they're back in parliament next week.

    • They will say squat.

      They will blather on about the G8/G20 "billion dollar boondoggle", the census, yada yada yada.

  6. Does anyone believe anything the Conservatives are saying if the reports about the billion $ G20 boondoggle are true! Remember the old adage" believe none of what you hear and only half of what you see". I've seen so much BS & spin from Parliament these days, that I now don't believe anything I see! I voted for Harper for his political accountability, but he's now the biggest oxymoron in Canada. Sheila Fraser is the only gov't. official that I believe anymore & even she may be on Harper's chopping block.

    • Ah your full of sh!t! Good government plain and simple!

      • Another naive Harperite who can't see through El Presidente Harper's spin & BS. Truth is always the first casualty of politics, especially with this bunch, so good government is an impossibility. I'm not a Liberal either, but good government, political accountability & fiscal conservatism are all oxymorons of the highest order. Sounds like the west is impairing your Newief common sense!

  7. Good government, plain and simple!

  8. Thank you Mr. Harper and the rest of your economic team for keeping your eye on the ball.

    Let the partisans in opposition whine about esoteric issues on prorogue and whether we have a long form vs. short from census.

    Whether I can afford my children's lessons, how well we eat, and peace of mind about my retirement and my kids' future is what matters most to me.

    That Harper's government has weathered this economic storm better than any in the world is critical. All the other "gotcha" games being played is petty nonsense.

    Let's not let some left liberal/socialist/seperatist coalition experiment with our successful economy. We need a Harper majority to be sure our economic stability continues.

  9. We'll see what Finance has to say in the Fall Economic Update. From what I see, growth is expected the be slow over the next few years, so I don't think we can expect the last $25 billion in deficit to disappear quickly.

  10. These numbers should be compared to the baseline of what expectations were, given the eventual running down of stimulus spending, and assumptions about the recovery. In fall 2009 Kevin Page was predicting a 43.1 billion dollar deficit for the present fiscal year (… ). In that light it sounds even more impressive.

    • True, and in historical terms, that deficit number (if it doesn't deteriorate and continues to improve) is not that alarming — bear in mind that in the early 1980s under Trudeau/Lalonde/Donald MacDonald, we were running deficits in absolute numbers in the $20-$30 billion range, with a GDP that was a fraction of our current GDP. And of course it's your debt & defict -to-GDP ratios that are the really important numbers, not the absolute size of your debt and deficits.