OTTAWA: The Canadian Taxpayers Federation (CTF) reacted today to the announcement that the federal government's spending is ballooning to unsustainable levels. The finance department reported today in their June Fiscal Monitor that Ottawa's expenditures grew by 11.1 per cent in June, and program spending swelled by an astounding 8.4 per cent in the first three months of the fiscal year. This increase is two-and-a-half times the 2008 budget's spending estimate, which called for a 3.4 per cent boost to spending.

"Many Canadians were encouraged by the Conservative's apparent new restraint shown in their third budget that limited spending growth to 3.4 per cent this fiscal year. Well, so much for that. In the first three months, spending is instead up two-and-a-half times what these so-called fiscally responsible Conservatives in Ottawa budgeted it to be," said CTF federal director John Williamson. "The Conservatives continue to claim they will still hit 3.4 per cent in spending growth for the year, but they've proven throughout their term in office that they can't stop themselves from spending."

The Conservative government's first budget called for Ottawa's expenditures to grow by 5.4 per cent in fiscal 2006/07. At the end of that year government receipts had jumped by 7.5 per cent. The 2007 budget plan announced an additional 5.6 per cent spending hike. The real amount in 2007/08 was a 6.9 per cent increase.

Canadians were initially assured a Conservative government would be more disciplined. On November 23, 2006, Finance Minister Jim Flaherty scolded the previous Liberal government for spending tax dollars recklessly, telling Canadians, "The government is committed to keeping the growth of program expenses below the growth of the economy over the medium term." In Parliament he repeated, "...our new economic plan proposes to keep the growth rate of program spending on average below the rate of growth in the economy."

And why is this important The minister provided the answer when he said, "To the extent spending growth is kept below the growth in the economy, this will contribute to further reductions in public debt and in taxes given the commitment to dedicate interest savings to tax reductions."

Williamson concluded, "The message is clear. Tax and debt reductions are conditional on spending restraint. The Conservatives have gone on a spending binge that hamstrings their ability to lower personal income taxes and reduce debt."