Mind the gap

Kevin Page has released his latest report. The Globe got an early look and summarizes as so.

In a report released today, Parliamentary budget watchdog Kevin Page warns it’s not good enough for Ottawa to simply balance the books – because of the increasing squeeze Canada’s greying ranks will place on coffers.

He predicts that even if Ottawa slays the deficit, it will still have to confront an expanding “fiscal gap” in revenue over the decades ahead that rises to $20-billion to $40-billion annually within seven decades. This will arise as Canada’s work force shrinks in proportion to its growing pool of retirees, a trend that should both slow the growth of government tax revenue and increase demands for health-care spending and old-age benefits.