No Red Ink ... Yet ...
- CTF Calls for Massive Expenditure Review to Keep Books in Black
TORONTO : The Canadian Taxpayers Federation (CTF) reacted with caution to the Economic and Fiscal Update tabled this afternoon by Finance Minister Jim Flaherty.
"The Government of Canada is now on the brink of deficit thanks to a failure to hold the line on spending," stated CTF Federal Spokesperson Kevin Gaudet. "Its time to look under every rock to ensure deficit spending does not return to
A Spending Problem:
The CTF has long called for spending increases to be limited to the combined rate of inflation and population growth. Since the books were first balanced in 1997-98, spending has routinely outpaced inflation and population growth by wide margins. "Both Liberal and Conservative governments have allowed spending to increase to unsustainable levels and this has contributed to today's bleak fiscal picture," added Gaudet.
Liberal and Conservative Spending Growth since 1997-98
Promising Signs:
The CTF welcomes the news of freezing pay for MP's as well as scaling back overly generous perks. "Tough times affect us all and for the government to lead by example is the right move," continued Gaudet. "In a slowing economy governments, just like households, have to prioritize and determine wants versus needs."
The CTF also commends the federal government for committing to end parliament's $28.6-million annual political welfare subsidy scheme. The subsidy scheme, passed in 2003 by the Chrétien government, provides political parties with $1.95 for each vote it received in the previous election.
"We're in tough economic times, so this is exactly the place to start tightening the belt," continued Gaudet. "We've opposed the subsidy scheme since 2003 because political parties should have to seek voluntary donations from Canadians, not take from the public treasury. It's absurd that Canadian taxpayers are forced to subsidize through their taxes, political parties that they do not support, especially in the case of the Bloc Quebecois - a party that seeks to break up our country."
Massive Expenditure Review Needed:
The CTF urges the federal government to immediately undertake a review of all spending in the lead up to the 2009 budget to make sure the books stay in the black. "Taxpayers expect the government to leave no stone unturned in its search for savings," concluded Gaudet. "This government must go through the budget line by line, department by department to ensure the budget remains balanced. They could start with curtailing the billions doled out to special interest groups and big business and downsize the bureaucracy which has bloated to nearly 500,000. All of these options are preferable to raising taxes."