October 2011
Without Growth in the EU, the EURO Crisis will continue
Why are EU leaders so happy? Is it because they were at the edge of the “cliff’ and they were able to come to an agreement on a framework that they believe will save the EURO and the EU? This framework includes a recapitalization of the banks; a "voluntary haircut" of 50 percent on Greek debt holders; and, a leveraging of the EFSF to about $1 trillion.
Read MoreFiscal Monitor for April to August 2011
For the first five months of fiscal year 2011-12, the federal government posted a deficit of $10.7 billion, down $2.8 billion from the $13.5 billion reported in the same period in 2010-11. Most of this improvement occurred in August as the year-over-year deficit dropped by $2.2 billion, primarily reflecting lower program expenses (down $1.3 billion), due to lower employment insurance benefits and the timing of transfer payments to the provinces.
Read MoreRecommendations to the Prime Minister and the Minister of Finance for the Fall Economic and Fiscal update
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“We are committed to eliminating the deficit by 2016.” “Budget 2012”
New Economic Forecast
On October 25th, the Department of Finance released its October 2011 survey of private sector economic forecasts. The average of the private sector forecasts forms the basis for the economic assumptions used for fiscal planning purposes in the budget and fall update.
Read MoreFederal Deficit Outcome for 2010-11 Lower Than Expected but the Deficit Will Still Not Be Eliminated in 2014-15
The Department of Finance released the audited financial results for 2010-11 today (October 12, 2011) in its Annual Financial Report (AFR). The deficit for 2010-11 was $33.4 billion, $2.8 billion lower than the June 2011 Budget estimate of $36.1 billion and a whopping $15.8 billion lower than the original forecast of $49.2 billion, released in the March 2010 Budget.
Read MoreEmployment Insurance Premium Rate Setting – Let’s Get It Right This Time
On August 18, 2011, the Minister of Finance launched another round of public consultations on the Employment Insurance (EI) rate-setting process. This will be the third time that the Government is proposing changes to the rate-setting process in the last five years. Previous governments were also constantly reviewing the EI premium rate-setting process as well.
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