Liberals forecasts massive deficit ahead
http://www.cbc.ca/news/politics/morn...dget-1.3458207
Quote:
Morneau said the government will post a smaller than projected deficit of $2.3 billion for 2015-16, down from the $3-billion deficit projected in November's fall fiscal update.
But that deficit will balloon to $18.4 billion in 2016-17 and $15.5 billion in 2017-18 — and that is before any new spending Morneau outlines in the March budget. Those numbers are drastically different from the $3.9-billion and $2.4-billion shortfalls forecast just three months ago.
"A less ambitious government might see these conditions as a reason to hide, to make cuts or to be overly cautious. But our government might see that the economic downturn makes our plan to grow the economy even more relevant than it was a few short months ago," Morneau said.
"We're not considering any tax changes at this time," the finance minister said when asked whether the government would consider raising general consumption taxes.
The revised two-year economic and fiscal outlook takes into account sharp declines in crude oil prices since the fall update and continued uncertainty in the global economy.
Morneau said private sector economists now expect crude oil prices (for West Texas Intermediate) to average $40 US per barrel in 2016, down from $54 per barrel expected in the fall update. He said the current price stands at $31.50 per barrel.
Quote:
The federal finance minister blamed the weak economy on the previous Conservative government.
"After 10 years of weak growth, Band-Aid solutions, and inaction from the previous government, Canada's economy was simply too vulnerable when faced with a combination of the drop in oil prices and economic uncertainty around the world," Morneau said in Ottawa Monday.
Interim Conservative Leader Rona Ambrose fired back calling into question the competence of the new Liberal government, blaming the soaring deficit on "uncontrolled, permanent, new spending."
"I find this reckless, irresponsible and it's entirely the result of the finance minister and the prime minister not being able to make the decisions that they need to make today to respect taxpayers' money," Ambrose said on Parliament Hill.
We're screwed haha.