Government runs deficit for April & May of 2008

[Sheerin]

Federal government runs $517M deficit in April, May

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.

Corporate tax revenue fell by $1.1 billion, or 16.6 per cent, from the same two months of last year.

GST revenues dropped by $1 billion, or 20.9 per cent, partly as a result of the one percentage point reduction in the GST rate, which was effective Jan. 1, 2008.

Spending on programs rose by $2.1 billion, or seven per cent, on higher transfers and other expenses.

"The monthly profile of growth in spending will initially be quite high but by mid-year will moderate considerably, consistent with the 3.4 per cent annual growth projected in budget 2008," said the finance department forecast.

http://www.cbc.ca/canada/story/2008/07/25/fedfinance.html

 

[a_majoor]

The "surplus" was, of course, 2.8 billion dollars in overtaxation.

Spending on programs rose by $2.1 billion, or seven per cent, on higher transfers and other expenses.

The solution for this problem is pretty self evident. (Anyone who suggests raising taxes goes to the back of the line and gets no dessert!)

 

[North Star]

Trust the media to yell about a deficit that turned into a slight surplus...

Fact of the matter is, government isn't supposed to make money...unless it has debt, in which case it makes a small surplus to retire a portion of that debt.

I like it this way. If the Liberals come back and want to spend oodles on new idiotic spending programs, they'll have to argue for them in light of tax increases!

 

[GAP]

Trust the media to yell about a deficit that turned into a slight surplus...

Fact of the matter is, government isn't supposed to make money...unless it has debt, in which case it makes a small surplus to retire a portion of that debt.

I like it this way. If the Liberals come back and want to spend oodles on new idiotic spending programs, they'll have to argue for them in light of tax increases!

They are already doing that to the tune of $15 billion....all revenue neutral of course....they guarantee they won't spend more than the $15 billion on vote getting programs.... :