The Parliamentary Budget Officer’s (PBO) latest report shows that the Harper government’s economic credibility remains in tatters, Liberal Finance Critic John McCallum said today.
“It’s time for Minister Flaherty to come clean about the sorry state of the deficit,” said Mr. McCallum. “The Harper government’s economic policies are an abject failure. As recently as three weeks ago, the Minister still clung to his five-year targets from January. Now we learn that the Conservatives have driven Canada into a $17 billion structural deficit and there is no credible plan to dig Canada out of the hole.”
The PBO’s Economic and Fiscal Assessment released today forecasts a five year cumulative deficit of $156 billion, including a $17 billion deficit in 2013-14. On June 16, Minister Flaherty told the Finance Committee that he’s sticking to his January projection that “sets out the plan to run to surplus by 2013-14,” despite having since revised this year’s deficit projection up to $50 billion.
“Despite their own admission that job losses will continue to mount next year, the Harper government still holds out no hope to create new jobs or help unemployed Canadians,” said Mr. McCallum. “If ever there was a case for fairness in Employment Insurance during the recession, this is it.”
The PBO report anticipates a minimum of 200,000 additional job losses next year, and possibly as much as a 500,000 job-loss spike over and above the unemployment estimates forecast in the budget, concluding that “those who become unemployed in the recession will remain so for a longer period, as jobs are harder to find.” The report further concludes that the government has yet to indicate how the budget will create 190,000 jobs as promised.
“The Harper government has no business pretending Parliamentary spending authority is the same thing as actual funding committed to job creating projects,” said Mr. McCallum. “This year’s laggard stimulus spending has left too many Canadians unemployed.”
An analysis of the government’s second report card by the PBO reveals a significant discrepancy between authorities in place for budget initiatives and actual funding committed.
“The Budget Officer deserves credit for providing the accountability that the Conservatives did not in their second report,” said Mr. McCallum. “With his honest assessment of the Canadian economy, he has shown the value his Office brings to Parliamentary debate and the importance of ensuring the Office has both the resources and access to information to continue its work.”
