November 2018
Fiscal Monitor for April – September 2018
The federal government posted a deficit of $1.4 billion in September 2018, compared to a deficit of $3.3 million in September 2017. Budgetary revenues were up 13.4%, reflecting strong increases in all major components. Program expenses advanced 2.2%, as a decline in other direct program expenses dampened increases in the other major components. Public debt charges were up a whopping 33.5% reflecting higher CPI adjustments on Real Return Bonds and a higher average effective interest rate on the stock of Treasury Bills.
THE 2018 FALL UPDATE IRRESPONSIBLE FISCAL PLANNING
Paul Martin presented the first fall Economic and Fiscal Update in 1995. The purpose of that Update was to present a review of current and future economic circumstances and what these meant for the fiscal situation of the federal government. It contained no new policy initiatives. These were left for the subsequent spring budget. The Minister of Finance and departmental officials appeared before the Commons Standing Committee on Finance to present the Update and to answer questions.
Read MoreA GOVERNMENT WITH NO UNDERSTANDING OF ITS PUBLIC FINANCES
Did Ontarians realize that when they voted for Doug Ford’s Conservatives that they would end up endorsing Kathleen Wynn’s election platform? How can this be? The starting deficit for the current fiscal year in the Economic Outlook and Fiscal Review (Fall Update) was $15 billion, the forecast provided by the Independent Financial Commission of Inquiry in late August. But this estimate actually includes the Liberal’s election platform: $300 million in revenue reducing measures and $5.7 billion in program spending increases.
Read More