Wednesday, January 11, 2012

Cutting spending

Even Kevin page says that the Tories are cutting. It's only the beginning!!!

The Conservative government is already cutting costs faster and more deeply than planned, with new data showing Ottawa has quietly trimmed overall government spending by 3 per cent.

That’s the conclusion of a new report by Parliamentary Budget Officer Kevin Page, which reviewed all government spending over the first six months of the current fiscal year.

2 comments:

Anonymous said...

HARPER MUST ADOPT A “ZERO-IN –TWO” DEFICIT ELIMINATION PLAN

If Canadians had a legitimate small-c fiscal conservative he would be complying with, rather than betraying Conservative Party election promises of downsizing the size of government, slashing expenditures, and refusing to increase taxes.

The PM must stop pretending to “restrain spending” while increasing expenditures by 22% since taking power, to $270 billion this fiscal year, even as he is planning to increase job-slaughtering payroll taxes. Canada paid off $105 billion of debt in 1997-2008; however, by the end of 2011 Harper had re-borrowed and spent all of it and more. Harper must learn the lesson that the 1990s Chr├ętien government has confirmed: the deficit/debt can only be eradicated by radically reducing the size of government rather than just curbing the rate of spending growth.

Fiscal conservatives are demanding that Harper eliminate the $31 Billion (2010/11) deficit by 2013, and then proceed to begin exterminating the $600 billion debt that is currently costing Canadian tax payers $31 billion annually in interest costs.

If he wishes to reclaim his small-c fiscal conservative reputation our left-plunging PM must expand the Strategic & Operating Review (S&O) review to include the total $280 billion of government expenditures rather than just $80 billion of it. The mandate of the S&O review must be adjusted to include transfers to individuals and governments.

Rather than relying on robust revenue growth that isn’t expected to transpire in the near future, a legitimate fiscal conservative would promulgate an austerity budget for 2012 including rigorous, relentless structural spending reductions, including cuts to individuals and other governments that would eliminate the $33 billion structural deficit in two years rather than somewhere around the 2015-17 period. Since it’s evident that our politicians are not energized to cut either spending or the size of government, a genuine small-c fiscal conservative would pass debt ceiling legislation that would implement escalating penalties on governments when the debt-to-GDP ratio is above target.

Since the best mode of stimulus is a resilient balance sheet, abolishing the deficit expediently in two years would permit the economy to roar ahead, and appeal to foreign capital a legitimate conservative would announce new fiscal restraint measures such as:

Cut overall program spending by 20% bringing expenditures back to pre-stimulus 2008 levels rather than keeping the base budget rate at the current levels;

Rather than continue to boost Federal employment (by 14% since 2006), lay-off 20% of overpaid, redundant bureaucrats who make much more than those paying their salaries, within the next 2 years, and freeze the salary and benefits for as long as it takes to bring them in line with private sector workers. In 2008 the average private sector workers was making 47% more than he did in 1991 ($810 wk), while the federal bureaucrat was making 71% more than he did in 1991 ($1286 wk);

Privatize the CBC, National Film Board, Canada Post, CMHC, Via Rail, airports, Government Printing operations, and Federal prisons;

Cut some benefits to those individuals with an adjusted gross income over $1 million;

Sell government assets such as some government jets, and some crown timber land;

Eliminate downsize and/or assimilate departments, and worthless crown corporations such as the CRTC and CMHC that dissipate $10 billion annually;

Delay starting $25 billion ships contracts;

Purge most of the $100 billion of annual tax credits that are really costly expenditures;

Abolish most corporate welfare;

Get rid of Regional Development Programs;

Eliminate the majority of arts subsidies, all language subsidies, interest groups, festivals grants, NGO’s subsidies, as well as nearly all other grants and contributions;

A genuine small-c fiscal conservative would begin the process to re-write the Canada Health Act; --machiavelli

Fenris Badwulf said...

Harper is adopting an effective one issue at a time roll back of the great Red blob.

All mention of the wheat board is gone from the red star now that the curtailment of the foreign green shirts is up.

I like the detailed plan, but putting it up in the open just is asking for red flak. Better to keep such things as a secret agenda. Works well, otherwise

I Support Lord Black