Thursday, March 29, 2012

Budget 2012

I am somewhat disappointed the budget did not cut more? I had heard there would be $8 billion in cuts.I would have preferred 16 billion in cuts. The budget does have some good things including increasing limits on trips abroad, fixing pensions among others. I think we need to continue to press the government to be far more brave in cutting the huge nanny state. National Post editorial board: Budget puts Canada on the right fiscal track National Post Editorial Board  Mar 29, 2012 – 6:55 PM ET Long gone are the days when Canadians still hoped or feared (depending on their political orientation) that Stephen Harper would deliver a truly draconian, fat-slashing budget. Even if a radical turn toward small government had been part of the PM’s “secret agenda” (which we doubt) that plan was dashed by the 2008 financial crisis, and by the stimulus spending that the Harper government argued was necessary to address it. The unfortunate result was an unravelling of much of the hard deficit-destroying work done by the Chr├ętien government, which in the 1990s made a series of tough decisions that helped prevent a Greek-style debt crisis here in Canada. When Mr. Harper took office in 2006, the government enjoyed a $13.8-billion surplus. Two years later, the red ink started to flow, with federal debt as a percentage of GDP rising from 29% in 2008 to 35% in 2010. Today, Canada finds itself at a crossroads: Will it return to the institutional deficits that brought on the debt crisis two decades ago — or will Mr. Harper take Canada back into the black now that the worst of the global recession appears to be over?

1 comment:

Anonymous said...

I think cutting $8 billion is a radical approach to dealimg with the problem. We are still having some economic difficulties so we should ease of on the deficit stimulus slowly. $16 billion in cuts would be a radical downsizing of government itself, something Canadians clearly do not want. Flaherty nailed a slightly right of centre budget policy, exactly what this country needs. And I was pleasantly surprised by it!

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