Flaherty’s thrifty budget keeps Canada worthy of top credit rating in G7

The National Post ^ | March 22, 2013 | Theophilos Argitis

[Former Proud Canadian]

Finance Minister Jim Flaherty safeguarded Canada’s status as the only Group of Seven country with a stable top credit rating after releasing a fiscal plan that eliminates the country’s deficit in two years.

Flaherty’s budget presented Thursday projected Canada will swing to a surplus of about $800 million ($781 million) in the fiscal year that begins April 2015, from a $25.9 billion deficit in the year ending this month, by limiting spending growth to the slowest pace since the 1990s and banking on an accelerated recovery. Moody’s said in a statement the budget is in line with the government’s Aaa bond rating.

“The important thing to take away from this is recognizing that Canada does stand head and shoulders over many of its developed-market peers in ensuring that its fiscal fundamentals are very sound,” David Tulk, chief Canada macro strategist at TD Securities said in an interview in Ottawa.

snip

Spending growth is forecast to average 2.1% over the next five years, after rising about 26%, or 4.9% a year, since 2007. Revenue is projected to grow an average 4.6%, more than double the current year’s pace, as Flaherty bets the country’s expansion will pick up steam.

“The prospect of a return to budget balance by 2015-16 and the beginning of a decline in the debt ratios after the 2014-15 year indicate that, relative to other large Aaa-rated sovereigns, Canada’s debt position will remain favorable,” Moody’s said in a statement.

Canada is the only G7 country with a stable AAA debt rating from Standard & Poor’s, Moody’s Investors Service and Fitch Ratings.

[Former Proud Canadian]

For US readers, just multiply all the numbers by 10 to get a good comparison, Canada is 1/10th the size of the US in terms of population and economy.

The highlight,a budgetary SURPLUS of $800 million ($8 billion US equivalent) in two years. This will go to debt reduction. Harper is also shrinking the size of the federal civil service.

Canada's biggest problem in the next few years will be keeping the value of the dollar down and trying to keep "hot money" out.

[Squawk 8888]

To all- please ping me to Canadian topics.

Canada Ping!

[Para-Ord.45]

1. Massive military cuts

2. Massive tax increases on small business.

3. Deficits for as far as the eye can see.

Hmm, might as well vote for Justine, the silky pony. That way we`ll get Liberals not afraid to call themselves Liberals.

[Dartman]

Don’t know where you got this from.
Still in mourning over Jack Layton?

[kanawa]

3. Deficits for as far as the eye can see.

"...projected Canada will swing to a surplus of about $800 million ($781 million) in the fiscal year that begins April 2015, from a $25.9 billion deficit in the year ending this month."

You must be extremely nearsighted.

[Para-Ord.45]

Got it from the budget.

Try read it before you post.

[Para-Ord.45]

Ah yes “projections”

Just what did the microscopic small “c” conservatives project previous deficits to be and what were the actual amounts?

I`m not conservative. I do not have a political ideology. As Mark Levin said, natural law, inalienable rights and the enlightenment is not a specific political ideology . They are natural facts like gravity.

The conservatives are pissing off their base as they race to the left. But it`s all a mute point once the canadian messiah/cult of personality ( Justine ) assumes control.