• CTF Commends Historic Debt Reduction Commitment
  
• Criticizes Lack of Five-Year Planning Projections
  
• Taxpayers Renew Call for a Fall Budget

OTTAWA: The Canadian Taxpayers Federation has reacted to the tabling of the Economic Statement by Finance Minister Paul Martin this morning during appearance before the House of Commons Finance Committee.

Debt Repayment
"We are pleased with the commitment to repay an unprecedented $15 billion on our mammoth $565 billion national debt," noted CTF federal director Walter Robinson. "However, we are again disappointed that the Minister has not instituted a legislated schedule of debt reduction to further reduce our debt - which still constitutes an egregious example of intergenerational tax evasion."

"And at $41.4 billion for the last fiscal year alone, debt servicing charges remain the single largest expenditure for the federal government," added Robinson. "Ottawa pays more money for interest to service the debt than it transfers to the provinces for health care. It amounts to a $113 million payment every day of the year to pay for the fiscal ineptitude of previous administrations."

Five-Year Outlook
"While the Finance Minister offered assurances that his five-year tax cut schedule was still on target and that Canada would not slip back into a budget deficit in the years to come, the lack of a five-year forecast brings this assertion into some question," added Robinson. "Noted economists as well as a prominent Liberal backbencher have sounded the deficit alarm bell given the size of the government's election commitments and its renewed proclivity to spend with disquieting frequency," added Robinson.

The CTF also noted that the last two economic updates - October 18th, 2000 and November 2nd, 1999 - provided five-year revenue and spending forecasts.

Fall Budget
"We reiterate our demand that the Finance Minister change his fall economic update, scheduled for October, into a full-fledged budget," said Robinson. "A budget is as much a political document as it is economic. Parliament has been usurped as Cabinet ministers continue to conduct government by press conference and news release announcing billions in new spending initiatives. Canadians deserve a clearer and more transparent picture of the government's fiscal direction which only a Budget can truly provide."