Prime Minister Stephen Harper in London, a week ago, urges G20 countries to start spending and do it quick: “I think if anything leaders should over-act at this point. I think there would be a risk of under-acting. Let's assume that we need dramatic action and let's do it.
Your assignment:
Examine the budgets of the federal government and the provinces and express, in percentage terms, the difference between overall government spending in 2010 and in 2009:
Answer:
- Canada: +8.9 per cent
- N.L.: +14.1 per cent
- ONT.: +11.9 per cent
- B.C.: +7.3 per cent
- N.B.: +5.9 per cent
- QUE.: +3.3 per cent
- MAN.: +1.8 per cent
- SASK: -0.9 per cent
- ALTA. -1.8 per cent
Note: PEI and NS have yet to table their budgets.
Alberta Opposition Leader David Swann says his province has become the “penny-pinchers” of Confederation.
That's a terrific way to expand the Alberta Liberal party beyond its two (?) seats. First budget deficit in 12 years, biggest deficit in Alberta history, and they come out and say “you aren't spending enough!”? In the most conservative province in the country? Really?
Alberta does have a lot of infrastructure issues that really could use some money, but this seems like one of these cases where a little nuance would go a long way. Money's being spent – but is it being spent on the right things?
Is it a deficit though? When Canadians speak about their governments running a deficit, that means that their governments must borrow money and at the end of the year, a debt will exist that must be paid back somehow by future generations in addition. So a deficit implies that somewhere down the road, taxpayers of a given year are going to have to pay not only for their spending that year but pay for extra spending by an earlier generation of taxpayers.
In Alberta's case, they are using a surplus built up by an earlier generation of taxpayers to pay essentially balance the budget this year. So there will be no debt and no burden for future taxpayers. Some would call that a balanced budget. It's certainly not a deficit in the same way that Ottawa or Queen's Park is now running a deficit.