Monday, April 21, 2014

The revised 2011 budget that the government will present next month will not show a surplus by 2014-15 as promised in black and white in the Conservative campaign platform, even though the government insists it still intends to deliver on the election promise.

Some of the Canadian government’s budget optimism comes from a plan to examine public sector spending and trim away the fat. Flaherty said that the government plans to undertake a “strategic and operating review” that is expected to save $4 billion annually, without any serious cutbacks.

Even if, in the end, they do balance the books a year early, by not adhering to their campaign promise, the Tories are ignoring one of the cardinal rules in politics: do what you say you’ll do.

Earlier Wednesday, Flaherty had told the Council of the Americas in Washington that his budget would be re-introduced in Parliament and that the country’s books could be back in the black within three to four years.

Still, Flaherty said that taxes would not go up this year, despite the aggressive push to eliminate the deficit.

“We have no intention of raising taxes. Our intention is to continue to lower the tax burden on Canadians and stimulate the private sector, which after all, is the engine of the economy”.

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