Ottawa added another $5 billion to its 2009-10 budget deficit in September, the Finance Department reported Friday.
Spending has outpaced revenue for the fiscal year that started in April by $28.6 billion.
That means the government is on track to meet Finance Minister Jim Flaherty’s latest prediction that the deficit will reach $56.2-billion for the full fiscal year.
That would be the biggest deficit in the country’s history.
The economic downturn had led the government to spend to stimulate the economy but it has also cut Ottawa’s revenues by $14.2 billion, or more than 12 per cent, reflecting a drop in personal and corporate income taxes and GST payments.
Corporate taxes were down almost 40 per cent, or $6.3 billion, in the first six months. Individual tax revenue dropped 7.5 per cent, or $4.2 billion, reflecting both tax cuts in the January budget and fewer people working.
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Notes:
As the CBC itself admits, Flaherty told us this was going to happen “many moons” ago. But today it’s earth shattering news because — “well” — nothing ever happens in Canada. I guess you work with what you have. I don’t know if others see it but I can picture the next few headlines…”Flaherty takes axe to frivolous programs“…”Flaherty dispenses with Quebec“…etc.
It is clear that Canada can’t afford these luxuries anymore.
“Heh”…
Let’s hope beyond hope that someone finally puts an end to the hemorrhaging of tax dollars…
Not as along as we have a liberal opposition party and a liberal wannabee in power.