Sunday, November 01, 2009

The reviews are in

Greg Weston:
In the world according to federal Finance Minister Jim Flaherty, the national deficit will disappear when the Conservatives stop printing those big cardboard cheques for roads, sewers and new door knobs.

The finance minister's recent economic report went so far as to promise the country would "return to budgetary balance" without raising taxes, or cutting support to seniors or families.

Canada will be back in the black, Flaherty promised, without reducing employment insurance benefits or funding to the provinces for health care, social services or regional equalization.

Instead, the author of federal budgets lucky to get the page numbering right would have us believe that when the recession ends, the deficit will too.

Or not. A closer look at what is actually driving the government $55 billion into the red this year shows much of the shortfall is the result of permanent Conservative tax measures and other factors that won't simply vanish in an economic recovery.

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