Federal government runs $517M deficit in April, May

[daleo]

The federal government ran a deficit of $517 million over April and May, the first two months of the current fiscal year, mainly due to lower corporate income tax and GST revenues.

Over the same time period last year, the government ran a $2.8 billion surplus.

The federal finance department said Friday that during this April and May revenues declined by $1.6 billion, or 4.1 per cent. The revenue estimates for the first two months of the year include the impact of tax reduction measures for people, businesses and the GST.

http://www.cbc.ca/canada/story/2008/07/25/fedfinance.html
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That didn't take long.

[HeresyLives]

1. Tory times are tough times.

And in this case because you can't spend like crazy AND cut taxes at the same time.

Tories are fiscal idiots.

[Bragi]

2. They're not "fiscal idiots" at all

Harper's not-well-hidden agenda is to starve future national governments of the resources needed to mount national programs.

He does this through masssive tax cuts, high spending in the few areas of federal jurisdiction supported by conservatives (e.g. the military) and by running down the federal treasury. He also wants to make institutional changes needed to boost the powers of the provinces at the expense of the national government.

My point being: Harper is no idiot. He knows exactly what he is doing. He is successfully remaking Canada into the weak national state he has wanted all long. It will be very difficult (though not impossible) for a future government to undo what Harper is now doing.

- B

[daleo]

3. Most Conservative voters are fiscal idiots, though

Over half still struggle under the delusion that their party is fiscally responsible. The rest know the truth, and they agree with what you state above.