Skip to comments.Flaherty’s thrifty budget keeps Canada worthy of top credit rating in G7
Posted on 03/22/2013 10:54:42 AM PDT by Former Proud Canadian
Finance Minister Jim Flaherty safeguarded Canadas status as the only Group of Seven country with a stable top credit rating after releasing a fiscal plan that eliminates the countrys deficit in two years.
Flahertys budget presented Thursday projected Canada will swing to a surplus of about $800 million ($781 million) in the fiscal year that begins April 2015, from a $25.9 billion deficit in the year ending this month, by limiting spending growth to the slowest pace since the 1990s and banking on an accelerated recovery. Moodys said in a statement the budget is in line with the governments Aaa bond rating.
The important thing to take away from this is recognizing that Canada does stand head and shoulders over many of its developed-market peers in ensuring that its fiscal fundamentals are very sound, David Tulk, chief Canada macro strategist at TD Securities said in an interview in Ottawa.
Spending growth is forecast to average 2.1% over the next five years, after rising about 26%, or 4.9% a year, since 2007. Revenue is projected to grow an average 4.6%, more than double the current years pace, as Flaherty bets the countrys expansion will pick up steam.
The prospect of a return to budget balance by 2015-16 and the beginning of a decline in the debt ratios after the 2014-15 year indicate that, relative to other large Aaa-rated sovereigns, Canadas debt position will remain favorable, Moodys said in a statement.
Canada is the only G7 country with a stable AAA debt rating from Standard & Poors, Moodys Investors Service and Fitch Ratings.
(Excerpt) Read more at business.financialpost.com ...
The highlight,a budgetary SURPLUS of $800 million ($8 billion US equivalent) in two years. This will go to debt reduction. Harper is also shrinking the size of the federal civil service.
Canada's biggest problem in the next few years will be keeping the value of the dollar down and trying to keep "hot money" out.
1. Massive military cuts
2. Massive tax increases on small business.
3. Deficits for as far as the eye can see.
Hmm, might as well vote for Justine, the silky pony. That way we`ll get Liberals not afraid to call themselves Liberals.
Don’t know where you got this from.
Still in mourning over Jack Layton?
"...projected Canada will swing to a surplus of about $800 million ($781 million) in the fiscal year that begins April 2015, from a $25.9 billion deficit in the year ending this month."
You must be extremely nearsighted.
Got it from the budget.
Try read it before you post.
Ah yes “projections”
Just what did the microscopic small “c” conservatives project previous deficits to be and what were the actual amounts?
I`m not conservative. I do not have a political ideology. As Mark Levin said, natural law, inalienable rights and the enlightenment is not a specific political ideology . They are natural facts like gravity.
The conservatives are pissing off their base as they race to the left. But it`s all a mute point once the canadian messiah/cult of personality ( Justine ) assumes control.