Canada Deficit/Debt Management

By: Paul Young, CPA, CGA

NDP comments / Stimulus

• Jack Layton quote from CBC

• NDP Comment:

Financial StatementStatement of Debt/Deficit

Analysis in Change in debt

Contribution to Debt Growth

Statement of Operations

Revenue to GDP

Program Spending to GDP

Program Spending per capita

Net Debt

Net Debt to GDP

Net Debt per capita

Budget balance to GDP%

Comments:

• There has been many comments on the federal government, especially debt and deficit. Mr. Harper took over as official government on February 5, 2006. The house was in a minority parliament as Paul Martin just left office. The CPC first annual report was 2006-2007 - http://www.parl.gc.ca/parlinfo/Compilations/FederalGovernment/PrimeMinisters/Gallery.aspx

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• Harper took a hard look at funding social programs starting in 2007-2008 (link: http://www.fin.gc.ca/afr-rfa/2008/afr2008_e.pdf) – see page 13

• USA economy growth rates on average are 2% as compare to 4% in the 1990s. http://www.statista.com/statistics/188165/annual-gdp-growth-of-the-united-states-since-1990/. LPC comments that Harper has been poor manager of the economy and yet nothing on USA Growth rates. USA still has not totally recover from housing bubble or stagnation with the middle class: http://www.cnbc.com/id/102438557. USA is Trade has been rebounding, but the problem is the lack of capacity for exports in key provinces like Ontario and PQ: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gblec02a-eng.htm

• 2008-2009 there was world-wide global recession which forced Harper and his government to spend on a stimulus. Both the LPC and NDP claim the stimulus was not enough it terms of helping the economy: http://www.thestar.com/business/2009/02/06/stimulus_not_enough_liberals.html. It is funny how Mr. Goodale recently made posts that CPC had been poor on managing the finances, but says little on how LPC asked for more money

• Mr. Harper increases transfers to the provinces by 50% over the past 8+ years. The provinces have more money for education/healthcare than at any point of time in the past 20+ years. In the 1990s the LPC cut transfers to the provinces, but nothing is said, why? http://www.slideshare.net/paulyoungcga/canada-deficit or http://www.slideshare.net/paulyoungcga/provincial-transfers-and-program-spending. The opposition parties like the LPC or NDP are good at saying healthcare will see $36B less in money, but say little how healthcare delivery by various provinces has gotten worst over the past 10+ years, why? The PBO report never look at delivery, but felt it is just a funding issue: http://www.bloomberg.com/visual-data/best-and-worst//most-efficient-health-care-2014-countries

Comments:

• Neither the LPC nor NDP discuss either the Build Canada or Gas Tax fund, why? Goodale did say the Build Canada fund is not working, but he never ever said that infrastructure projects carry over to multiple years, why? http://www.slideshare.net/paulyoungcga/municipalities-canada. BTW: What party brought up CPPIB could be used to finance infrastructure projects? http://news.nationalpost.com/2015/01/23/kelly-mcparland-justin-trudeaus-hidden-agenda/. Did the LPC not raid EI in the 1990s? http://www.cbc.ca/news/canada/martin-defends-employment-insurance-surplus-1.164131

• Mr. Harper continues to provide different programs that either existed under the LPC or were revamped under his watch. Mr. Goodale was quoted as saying his party introduced SDTC, but never says how that program benefited green technology, why? http://www.slideshare.net/paulyoungcga/federal-government-programs-canada or http://www.hazmatmag.com/remediation/federal-budget-supports-environmental-technology-contaminated-site-cleanup/1000016105/. So, where does SDTC or Next Generation Fuel Funds stand with either the NDP or LPC?

• LPC never talks about issues with provincial policies, why? The LPC is great saying it is all about money, but really they never once said how mining regulations or skills trades or power rates or carbon taxes or other policies are impacting business investment, why? http://www.canadianmanufacturing.com/manufacturing/mpp-chan-says-exporting-priority-ontario-liberals-142867/ or http://www.theglobeandmail.com/report-on-business/economy/ontario-drives-manufacturers-away-with-overpriced-electricity/article14854752/. It is never one policy that hurts business, so why is more not being said by the LPC? CPC have done great taxation, investment/trade/etc. or basically federal policies! http://www.kpmg.com/ca/en/issuesandinsights/articlespublications/press-releases/pages/canada-remains-most-competitive-business-tax-environment.aspx or http://www.slideshare.net/paulyoungcga/key-market-and-industry-indicators-for-canada-january-2015. The LPO has also said the AG sector is important, but yet their policies have failed that sector: http://www.ofa.on.ca/media/news/connecting-with-cabinet-is-first-order-of-business

• Trudeau - http://business.financialpost.com/fp-comment/terence-corcoran-finance-minister-joe-oliver-has-it-right

• Mulcair Corporate Taxation - http://www.macleans.ca/economy/business/tom-mulcairs-idea-on-corporate-taxes-sounds-scary/

• Paul Martin - https://www.policyalternatives.ca/publications/monitor/beware-canadian-austerity-model. Justin Trudeau talks about Harper being a poor fiscal manager, but never once discusses the economic growth trends, why? http://www.multpl.com/us-gdp-growth-rate/table/by-year

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Debt to GDP – 2013

Government Debt / Canada

Government Debt / Canada

Government Debt / Canada

Government Debt / Canada

Economic growth