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Author Topic: 2008 budget and what about a recession?  (Read 3499 times)

Offline spud

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2008 budget and what about a recession?
« on: February 27, 2008, 10:28:06 AM »
We're in the strongest economic position of the G-7 countries to go through a time of economic turbulence," he told Canada AM on Wednesday, a day after delivering his third federal budget.

Don Drummond, the TD Bank Financial Group's chief economist, echoed that view.

He told Canada AM that the domestic side of the economy remains very strong, but the economic weakness in the U.S. will affect the export side.

"We can't avoid the weakness south of the border, but we've done what we can do," Drummond said.

However, Liberal finance critic John McCallum told Canada AM that the government has already downgraded growth forecasts and that the Tories' numbers were so tight, a small deficit could result if the economy slips further.

"We're a SARS crisis away from deficit or we're a minor U.S. recession away from deficit," he said. "And this from a government having inherited two short years ago, the largest inherited surpluses in Canadian history."

McCallum called that "bad economic management."

The budget tabled Tuesday commits to balanced budgets for 2008-2009 and the fiscal year after that. Modest surpluses of $2.3 billion and $1.3 billion are forecast for the next two years.

There were no major tax cuts or new programs announced. However, the budget did offer:

A brand new tax-free savings account;
Breaks for seniors;
$400 million to hire 2,500 new police officers; and
$500 million for public transit infrastructure

http://www.ctv.ca:80/servlet/ArticleNews/story/CTVNews/20080226/budget_rx_080227/20080227?hub=TopStories

there is no chance of an election this time..

Offline spud

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Re: 2008 budget and what about a recession?
« Reply #1 on: February 27, 2008, 10:31:41 AM »
Quote:  "And this from a government having inherited two short years ago, the largest inherited surpluses in Canadian history."

McCallum called that "bad economic management." endQuote

Yes indeed, the conservatives cut back on the important things but spend more than any of the other parties ever would have (even WITH a full national/universal childcare program the liberals proposals spent much less than the conservatives...interestinly more, the NDPs campaign budgets showed the least amount of spendign with the most amount of services for the people...thats called good economic management...I will go hunt out my sources for yas on this a little later, gotta go!)

Offline CareDC

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Re: 2008 budget and what about a recession?
« Reply #2 on: February 27, 2008, 11:48:41 AM »
I thought that conservatives would be more conservative when it comes to spending.

Offline spud

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Re: 2008 budget and what about a recession?
« Reply #3 on: February 27, 2008, 02:01:59 PM »
The name is deceiving isn't it.?

Offline spud

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Re: 2008 budget and what about campaigne promises?
« Reply #4 on: February 27, 2008, 08:19:28 PM »
Reality Check
Party spending promises: Costing them all out CBC.ca Reality Check Team | Dec. 23, 2005 | More Reality Check

   
   

As the party leaders slow their pace for the holidays, we bring you a tally of the spending promises so far from the campaign trail. Not quite halfway into the eight-week campaign, Stephen Harper's Conservatives are in front and setting a torrid pace with nearly $80 billion in promised tax cuts ($73 billion) and spending initiatives ($6.6 billion) over the next five years. They also own the single most costly item of the campaignóthe $27-billion plan to cut the GST by one and ultimately two percentage points within five years. The Conservatives haven't costed this out themselves, but they acknowledge that a one percentage point GST cut, which they are promising to do right away, will dock the treasury $4.5 billion a year. Our math assumes the second percentage point cut won't come until year five, though the party platform says it might come earlier.

The NDP has the second most expensive set of campaign promises: $40.8 billion in tax cuts ($17.3 billion of that is found in the party's proposed new child tax credit) and $26.8 billion in spending for a total of $67.5 billion. Then come the Liberals at $56.5 billion: $32.5 billion in tax cuts, $24 billion in spending. They are followed by the Bloc Quebecois at $55.8 billion, a platform that breaks down over three years. And the Greens at $27 billion.     
   

January may well bring a host of further announcements as well as the official party platforms. With the exception of the Bloc, the tallies below are five-year totals for what have been pledged since the start of the campaign. They also include the commitments made in the Liberal government's economic and fiscal update on Nov. 14, parts of which both the Conservatives and NDP have said they intend to support. The NDP, for example, says it agrees with about 80 per cent of the Nov. 14 initiatives. The Conservatives are planning to keep the reduction in the tax bracket for low-income earners from 16 per cent to 15 per cent, a tax cut that will cost the treasury $23 billion over six years (it's retroactive), when the top-up to the basic personal exemption is added in.

Reality Check double-checked the figures with officials at the respective campaigns, as well as with some independent economists. Still, the totals should be taken with a drop of caution. The main thing to remember is that these costs represent the best estimates of new plans and directions but not necessarily new spending. Some, perhaps many, of these plans will come about by shifting existing expenditures within departments. The parties have not clearly set out what in their plans amounts to new spending and what does not.

The other thing to remember is that five years is a long time in the life of a minority Parliament, which is the expected outcome after Jan. 23. The Nov. 14 update projected federal surpluses totalling $54.5 billion by fiscal year 2010-11, and many economists believe that is a reasonable estimate. So there may well be money in the kitty. Projecting that far out, though, is something of a mug's game.

The Liberals have consistently underestimated surpluses in recent budgets: the current 2005-06 federal surplus is now estimated to be $8.2 billion, up from the $4 billion put forward in February. Still, counting that many chickens before they are hatched is not something promise-making politicians should undertake lightly.Conservatives | Liberals | NDP | Bloc | Green


Conservatives  Cost (millions)  Date announced 
Tax cuts 
Cutting GST to 6 per cent immediately, 5 per cent within 5 years  $27,000  Dec. 1 
Increasing the basic personal credit by $500  $6,345  Nov. 14 
Decreasing the lowest personal income rate to 15 per cent  $17,105  Nov. 14 
$1,200 child-care allowance as well as new child-care spaces  $10,900  Dec. 5 
Cutting taxes for small businesses  $2,400  Dec. 7 
$500 tools tax deduction for apprentices  $150  Dec. 8 
$1,000 grants for apprentices  $400  Dec. 8 
$500 tax deduction on textbooks  $375  Dec. 8 
Improvements to the Canada Student Loans program  $100  Dec. 8 
Tax exemption for first $10,000 of student scholarship or bursary income  $25  Dec. 8 
Increasing RRSP and private pension deduction for seniors  $2,235  Dec. 9 
$500 tax credit for sports registration for children under 16  $650  Dec. 12 
16 per cent tax credit for public transit pass users  $2,000  Aug. 4 
Additional funding for farm support programs  $2,500  Dec. 21 
$2,000 credit for employers hiring apprentices  $800  Dec. 7 
Subtotal  $72,985     
   
Spending 
Pacific Gateway Initiative - funding to improve trade with Asia-Pacific  $591  Dec. 17 
Setting up a Canadian Strategy for Cancer Control  $250  Dec. 10 
Additional defence spending, including Arctic sovereign initiatives  $5,300  Dec. 13 
Fighting the mountain pine beetle problem in B.C.  $500  Dec. 17 
Subtotal  $6,641     
Total  $79,626   


Liberals  Cost (millions)  Date announced 
Tax Cuts 
Tax cuts announced in November 2005 fiscal update  $30,455  Nov. 14 
Increased capital gains exemption for small businesses and farmers  $600  Dec. 19 
Income trust tax credits  $1,500  Nov. 23 
Subtotal  $32,555     
   
Spending 
One-year extension of current homelessness initiatives  $263  Nov. 22 
Commitment to build new child-care spaces  $5,000  Dec. 6 
Community safety initiatives, including the handgun ban  $650  Dec. 8 
Funding for creating opportunities, from the November fiscal update  $9,238  Nov. 14 
Research and innovation funding, from the November fiscal update  $2,344  Nov. 14 
Funding from the November fiscal update to improve global commerce  $1,175  Nov. 14 
Funding for aboriginal programs, announced at the Kelowna summit  $5,085  Nov. 25 
Improvements to the Goose Bay Armed Forces base  $59  Nov. 25 
Enhanced security for public transit/rail  $110  Nov. 23 
Extension of current rural development funding initiatives  $30  Dec. 20 
Subtotal  $23,954     
Total  $56,509   


NDP       
Tax Cuts       
Increasing the federal child tax credit by $250 each year for four years  $17,300  Dec. 12 
Increasing the basic personal credit by $500  $6,345  Dec. 5 
Decreasing the lowest personal income rate to 15 per cent  $17,105  Dec. 5 
Subtotal  $40,750     
   
Spending 
Creating new non-profit child-care spaces (four-year plan)  $8,700  Dec. 12 
Improvements to border crossings to aid the auto industry  $1,250  Dec. 9 
Expansion of home-care services  $5,000  Dec. 8 
Increasing number of hospital long-term care spaces  $2,500  Dec. 8 
Home retrofit program to reduce energy consumption in houses  $200  Dec. 6 
Post-secondary funding  $4,000  Dec. 5 
Funding for aboriginal programs, announced at the Kelowna summit  $5,085  Dec. 21 
Accelerated gas tax dispersal to cities and communities  $33  Dec. 20 
Subtotal  $26,768     
Total  $67,518   


Bloc  Cost (millions)  Date announced 
Total three year spending from the platform, announced Nov. 30th  $55,800  Nov. 30


Green  Cost (millions)  Date announced; 
Tax Cuts 
Decreasing the lowest personal income rate to 15 per cent  $17,500  Dec. 9 
Subtotal  $17,500     
   
Spending 
Implementing national cancer-fighting strategy  $500  Dec. 18 
Implementing the Kyoto plan  $7,140  Dec. 9 
Investment in renewable energy  $1,500  Dec. 9 
Public works projects in Haiti  $500  Oct. 4 
Subtotal  $9,640     
Total  $27,140     
Projected 5-year surplus  $54,500 

 
 


 


Offline jharrisece

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Re: 2008 budget and what about a recession?
« Reply #5 on: February 27, 2008, 08:28:14 PM »
I was at a meeting last montht where they said they have 'done the math' and the $100 a month has actually cost MORE than a universal childcare system would have!

Offline Laura

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Re: 2008 budget and what about a recession?
« Reply #6 on: March 04, 2008, 02:00:17 PM »
It would be very interesting to see how much more it would have cost than the $100 a month.

Offline CareDC

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Alberta spends less on daycare than it gets in federal funding
« Reply #7 on: March 07, 2008, 10:19:14 PM »
EDMONTON - Some families wait years for space in day cares, but the province has been spending far less than its budget for child care.

That was evident in 2005-2006 when the Alberta government got $14.9 million more from Ottawa than it spent on child care, says Bill Moore-Kilgannon, director of Public Interest Alberta.

http://www.canada.com/edmontonjournal/news/story.html?id=50af4a35-3c76-4033-988b-89254a449c2d&k=19850

Offline spud

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Re: 2008 budget and what about a recession?
« Reply #8 on: March 09, 2008, 09:50:35 AM »
So, how does the community of Edmonton Alberta feel about their governments missuse of the childcare funds?  I would be pissed right off. Albertans seem to have different values than the rest of Canada.

 

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