2013 Federal Pre-Budget Sumission
"[Our platform] will allow us to eliminate the deficit in 2014, a full year ahead of schedule.”
-Stephen Harper, April 8th 2011 Campaign Rally
After five years of profligate spending, the Conservative government of Stephen Harper did a decent job keeping a lid on spending in 2012-13. However, more will need to be done if the government is going to keep the promise they made in the 2011 election. While the media seem to forget about this promise, instead focusing on Finance Jim Flaherty’s promise of a balanced budget in 2015, we at the Canadian Taxpayers Federation have not.
We expect the budget to be balanced by the end of the next fiscal year (2013-14) with a surplus in 2014-15, and we know that it can easily be done.
Why is it so imperative to balance the budget? The growing annual interest payments on the debt are one very easy to understand reason.
What is the cost of all the debt added between 2007-08 and 2015-16? CTF calculations show that interest payments on this new debt will cost taxpayers $80 billion by 2018-19. This number will be far higher by the time the federal debt is projected to be retired in 2038.
While the government has kept a lid on program spending in this past year, there are other areas of concern. The CTF has laid out a roadmap of six key reforms that will help the government reach budgetary balance by 2014-15, as promised in the 2011 federal election.