Thursday, March 10, 2011

The Shrinking Deficit

With P growing economy, the deficit has shrunk and thats according to the very grit friendly td bank. perhaps they are trying to warn iffy. Wonder if they will lend the grits any money. The grits really want an election?

Flaherty's budget surprise could be a far smaller deficit, says TD Bank
By: Julian Beltrame, The Canadian Press

OTTAWA - Finance Minister Jim Flaherty could have a big surprise in store for Canadians on March 22 — a much smaller deficit than predicted.
A new analysis by the TD Bank says Ottawa's fiscal position is in much better shape than it reported last fall, thanks to a stronger economy and higher tax revenues in the second half of 2010.
That means the deficit is likely to come in at $39.5 billion this fiscal year — $5.9 less than projected.
As well, should the economy continue to expand as the current rate, next year's deficit — the 2011-12 fiscal year — could shrink to $21.7 billion, $8.1 billion less than projected.
"The story is that the economy has been perking up lately and this is going to deliver a nice benefit to the short-term revenue performance," said Derek Burleton, TD's deputy chief economist and one of the authors of the report.


wilson said...

Low taxes and low interest rates kept the Canadian economy from crashing.

Imagine the damage the Green Shift, raising the GST and a tax hike on businesses would have done.

Bravo Minister Flaherty, Govenor Carney and Prime Minister Harper.

CanadianSense said...

As economic activity returns to the developed economies Canada is well placed to take a leadership role.

The BRIC countries are in need of our expertise and resources.

The Federal government made a decision in December 2008 to partner with the provinces and cities for the largest "shovel ready" stimulus program in Canadian history to help offset the pain and lay the groundwork for a speedy recovery.

As we exit the global recession many investments in 2008 will have a direct benefit to our productivity for generations to come.