Canada Promises Budget Surplus, Then Gives It Away

[Spazito]

OTTAWA (Reuters) - Finance Minister John Manley forecast a budget surplus of C$2.3 billion for the year to March 31 on Monday, but then gave almost all of it away in a C$2 billion health-care promise.

In a fall fiscal update presented to Parliament's finance committee, Manley also forecast 2003 growth of 1.9 percent and 2004 growth of 3 percent, based on estimates from private sector economists.

<snip>

But Manley said promises to provide extra money for the public health-care system would still be met, with the provinces receiving cash next fall -- provided this year's surplus came in as forecast.

<snip>

Canada is the only country in the Group of Seven rich industrialized nations that is still running a surplus -- a source of great pride to the government and a huge contrast to the situation in the United States.

more

http://story.news.yahoo.com/news?tmpl=story&cid=840&e=17&u=/nm/canada_economy_budget_col

(This just squeaks by the 12 hour rule - just showed up on Yahoo tho)

[jayfish]

1. Sounds Better Than A Tax Cut Any Day Of The Week.

And thats not sarcasm. I love Canada.

Jay

[depakid]

2. Gives it away?

Ahem- note to Reuters- Get a clue... Health care is AN INVESTMENT in human capital. It yields dividends in all sorts of ways. IT IS NOT a "giveaway."

[Screaming Lord Byron]

3. Yep, sounds like a reasonable thing to do with the surplus.

[TrogL]

4. Not so fast

They don't get it until next October if the surplus is still there.

The provinces are howling in outrage and lobbying Paul Martin to change it when he gets in.

[Spazito]

5. It makes sense to ensure the surplus is a fact not just a projection...

before spending it, imo. The premiers would scream regardless. If they got the money, they would say it wasn't enough. I would rather our government be cautious than spend on projections. That being said, I have little doubt that Martin will "release" the money prior to the upcoming election next year.

[Hand]

7. Oh, for sure...

Paul Martin's a sleazoid. Can't say that I'm looking forward to him--watch him cozy up to the BFEE and the big-money boys who bankrolled his leadership campaign.

One thing I like about Chretien--apart from his generally whacked-out style, which is refreshing--is that he can wear a $2000 suit and still look rumpled and ill-clad. Martin--shit, he looks like was BORN in one. Not a good sign.

[Festivito]

6. Spending HALF percapita than US, it's time for an increase. nt.

[JohnyCanuck]

8. I'm always suspicious of gov't accounting anyway.

For example, in the recent Ontario elections the ruling Conservative party touted their financial management skills in bringing in balanced budgets and claimed with much fanfare Ontario was on line for another balanaced budget in 2003. The Liberals won the election, took a peak at the books and anounced Ontario's actually heading for a 5.6 billion dollar deficit this year.

Ooops all those election promisses are going to have to wait. Well back during the campaigning, I said to myself that dollars to donuts the Liberals would get in and then claim the books showed the provinces financial condition was worse than we were told and therefore their campaign promisses would have to be "adjusted" accordingly. I didn't even need a crystal ball.