update

Thursday July 9, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday July 9, 2020

Highlights of Bill Morneau’s 2020 fiscal ‘snapshot’

November 2, 2016

Finance Minister Bill Morneau has delivered an update on federal spending and economic projections linked to the government’s response to the COVID-19 pandemic.

Morneau is calling today’s statement an “economic and fiscal snapshot” rather than the traditional economic and fiscal statement that comes between budgets.

Morneau was forced to put off his spring budget in March after the devastating economic effects of the pandemic became clearer.

October 19, 2017

The deficit for 2020-21 is expected to rise to $343.2 billion from the $34.4 billion deficit projected before the pandemic. 

A big chunk of that additional deficit can be attributed to the $212 billion in direct support measures the federal government is providing to individuals and businesses.

The snapshot says that, aside from the pandemic program spending, the economic slowdown is estimated to have added another $81.3 billion to the deficit in 2020-21.

March, 1, 2018

The Canadian economy is projected to shrink by 6.8 per cent this year before bouncing back by 5.5 per cent next year, making this crisis the worst economic contraction since the Great Depression. The economy is expected to decline in 2020-21 more than twice as much as it did in 2009-10 in response to the global financial crisis. 

Due to the the financial supports provided by the federal government, the federal debt-to-GDP ratio is expected to rise from 31 per cent in 2019-20 to 49 per cent in 2020-21.

The federal government says it’s getting a better deal on that debt through very low interest rates. “As a consequence of these developments, the government will save over $4 billion in public debt charges in 2020-21 compared to the forecast presented in the 2019 Economic and Fiscal Update in December 2019,” the snapshot said.

COVID-19 Cartoons

Between February and April, 5.5 million Canadians either lost their jobs or saw their work hours significantly reduced.  Those losses pushed the unemployment rate to 13.7 per cent in May — the highest rise on record — from a pre-crisis low of 5.5 per cent in January.

Finance Minister Bill Morneau said that without government pandemic programs, the GDP would have contracted by more than 10 per cent and unemployment would have risen by another 2 per cent. (CBC) 

 

Thursday November 22, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 22, 2018

Fiscal update to lay out competitiveness plan, close loop on some Liberal vows

The federal government will release a fall economic update Wednesday that will seek to close the loop on some of its outstanding mandate commitments, leaving the door open for the Liberals to use next year’s budget as their 2019 election platform.

March, 1, 2018

The document will also include Finance Minister Bill Morneau’s long-awaited plan to help Canada compete for investment dollars, which many warn has become increasingly difficult following major tax and regulatory changes in the United States.

Morneau has faced pressure to lower Canada’s corporate rate, but the government has signalled it will focus on targeted measures to accelerate investment rather than across-the-board tax cuts.

The document will likely be the Liberal government’s second-last opportunity — besides the spring budget — to deliver major policy announcements and its political pitch in package form before the October 2019 election.

February 12, 2016

As for fiscal responsibility, the official said the fall statement will show that Canada’s annual projections for the federal deficit and the debt burden will continue to slide downward on trajectories similar to those outlined in the 2018 budget.

The Liberals have faced regular criticism from the Opposition Conservatives for abandoning their 2015 vow to run only modest annual shortfalls of no more than $10 billion and to eliminate the deficit by 2019.

Instead, the Liberals have posted deficits of more than $18 billion in each of the last two years.

As its guiding principle on fiscal responsibility, the government has focused on lowering the country’s debt burden — as measured by net debt-to-GDP — rather than balancing the books.

The debt-to-GDP ratio fell to 31.3 per cent in 2017-18 from 32 per cent in 2016-17. The government has predicted the ratio to fall to 30.1 per cent in 2018-19 and continue sliding each year until it reaches 28.4 per cent in 2022-23. (Source: CTV News) 

 

Saturday November 17, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday November 17, 2018

Ford government’s 1st fiscal update shows Ontario cut deficit to $14.5B

Ontario’s Progressive Conservative government says it has cut the province’s deficit by $500 million, bringing the figure down to $14.5 billion in its first few months in office.

June 25, 2018

The change is announced in the government’s Fall Economic Statement for 2018-2019, its first major fiscal update since winning the spring election.

“The fiscal hole is deep,” Finance Minister Vic Fedeli said in presenting the document to the legislature on Thursday afternoon. “The road ahead is not an easy one and will require difficult decisions. Everyone across the province will be required to make sacrifices, without exception.”

The government said it has made progress on cutting the deficit by finding $3.2 billion in efficiencies in operations, including a hiring freeze across the public service.

The belt-tightening measures laid out also include rolling the positions of three independent officers — the environmental commissioner, the child and youth advocate and the French language services commissioner — into the offices of the auditor general or the provincial ombudsman.

Government staff could not say what will happen to those working in the eliminated offices, but Premier Doug Ford has consistently promised that no jobs would be lost as a result of his cost-cutting.

Plans for a French-language university have also been cancelled, though the government could not immediately say how much money the move would save.

Though it is spending less, the government said it is also taking in $2.7 billion less in revenue in the fiscal year — including $1.5 billion attributed to the cancellation of cap and trade.

More than $300,000 in lost revenue is attributed to cancelling planned tax increases, including one that would have raised taxes for small businesses, the document says.

The Tories had said the previous Liberal government left a $15 billion deficit, a figure disputed by critics, who said it includes spending promised by the Liberals but cancelled by the current regime.

While the document mentions returning the province’s budget to balance, it does not spell out how long it will take to achieve that goal. (Source: CTV News) 

 
 

Wednesday November 2, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Wednesday November 2, 2016 Fiscal update boosts Liberal infrastructure plans but offers no path back to balance Justin Trudeau's Liberal government is responding to the sluggish global economy with a fall economic update that puts a even greater focus on infrastructure spending than in its spring budget, while making it easier for private sector investors to add their money to the government's already considerable funding pot. While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecast in the spring budget, the new figure no longer has any kind of a safety cushion built in. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending since last spring. The deficit situation improves toward the end of the government's five-year horizon, to $16.8 billion in 2020-21. The projected debt-to-GDP ratio Ñ the key measure of the affordability of a government's debt Ñ by then returns to the 31 per cent mark, where it was in 2015-16 as the Liberal government took office. Morneau told reporters his government made the right decision in preparing itself for what is happening to the economy. But Interim Conservative leader Rona Ambrose said the Liberals' massive spending has created no new jobs and has led to a stalled economy. "They think this failed plan is somehow working, and they're doubling down on it," she said. Repeating the party's line that the Conservatives are the voice of taxpayers, Ambrose accused the government of "making lives more expensive for Canadians.Ó "Canadians are worse off today than they were a year ago," Ambrose said. "But instead of action, we hear excuses.Ó (Source: CBC)Êhttp://www.cbc.ca/news/politics/fall-economic-update-bill-morneau-1.3831080 Canada, Bill Morneau, budget, economy, deficit, statement, update, economic, dragon, spending

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday November 2, 2016

Fiscal update boosts Liberal infrastructure plans but offers no path back to balance

Justin Trudeau’s Liberal government is responding to the sluggish global economy with a fall economic update that puts a even greater focus on infrastructure spending than in its spring budget, while making it easier for private sector investors to add their money to the government’s already considerable funding pot.

While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecast in the spring budget, the new figure no longer has any kind of a safety cushion built in. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending since last spring.

The deficit situation improves toward the end of the government’s five-year horizon, to $16.8 billion in 2020-21. The projected debt-to-GDP ratio — the key measure of the affordability of a government’s debt — by then returns to the 31 per cent mark, where it was in 2015-16 as the Liberal government took office.

Morneau told reporters his government made the right decision in preparing itself for what is happening to the economy.

But Interim Conservative leader Rona Ambrose said the Liberals’ massive spending has created no new jobs and has led to a stalled economy.

“They think this failed plan is somehow working, and they’re doubling down on it,” she said.

Repeating the party’s line that the Conservatives are the voice of taxpayers, Ambrose accused the government of “making lives more expensive for Canadians.”

“Canadians are worse off today than they were a year ago,” Ambrose said. “But instead of action, we hear excuses.” (Source: CBC)