There are some that say this budget is reasonable, perhaps so but I would have liked to see more and deeper spending cuts, and some broadbased tax cuts too. But what do I know?
OTTAWA — The government’s plan to dig the country out of deficit in five years is “reasonable” but will require discipline and relies heavily on a global economic rebound, leading economists say.
As a middle-of-the road forecast it’s a reasonable one,” says Avery Shenfeld, chief economist with CIBC. “We know that government revenues were hammered by the depths of the recession and we’ll make a significant comeback over the next four, five years.”
Shenfeld says the feds’ prediction that government revenues will rise to $296.5 billion in 2014-15 from $231.3 billion a year in 2010-11 sits in the middle of a range of private-sector forecasts.
What was most important in the budget, economists say, was the commitment to rein in spending and send the message that belt-tightening and balancing the budget would be the mission going forward.
“It is a realistic plan but it depends on two things,” says Douglas Porter, deputy chief economist with BMO Capital Markets. “Most importantly the global recovery has to stick and take route and the government has to maintain spending discipline.
For one thing, I don't know how they can forecast 3,4,5 years out like that but oh well. How do they know for sure how much revenues will rise? Do they have a crystal ball? Secondly, we need to be wary of what's going in Europe, such as in Greece, Spain, Portugal for instance. What about the UK? Their situation is not exactly rosy. The good ole United States of America, our largest trading partner. They are in a hole they WILL probably never dig themselves out of.
Here's something that is music to my ears.
Canadians will likely hear within a year that certain Crown corporations and assets are going up for sale, federal Finance Minister Jim Flaherty says.
I do hope the publicly funded CBC is one of those assets that will be on the auction block.
I generally like the budget. It's a fairly good start but they could go further.
BTW. They could have not proceeded with the $19bil stimulus. I don't think it's need.