Having arrived at Finance Minister Jim Flaherty’s 120-day self-imposed deadline for stimulus spending, the only result the Harper Conservatives can point to is a record deficit of at least $50-billion and stalled stimulus projects throughout the country, Finance Critic John McCallum said today.
Minister Flaherty’s January 2009 budget explicitly stated, “Measures to support the economy must begin within the next 120 days to be most effective.” Yet recent media reports confirm that little infrastructure money has flowed, more Canadians are unemployed, and the budget deficit has reached structural proportions, topping $50 billion.
“Our government’s finances are in free-fall, and there’s no one at the wheel,” said Mr. McCallum. “This Finance Minister has blundered into the largest budget deficit in Canadian history, mere months after predicting a surplus and no recession.”
“Now what do they have to show for their January budget? More than 40% of the unemployed in this country aren’t eligible for EI, even though they have paid into the system. Next to no construction is underway on their announced infrastructure projects. And now, we learn that continued Conservative mismanagement is at the root of a massive structural deficit – that began before this recession even hit.”
Back in January, the government promised immediate, urgent stimulus after denying the impending recession in the November economic update, yet few shovels have hit the ground. Far from creating or maintaining “close to 190,000 Canadian jobs” as promised in the January budget, more than 300,000 Canadians have already lost their jobs during this recession.
“Mr. Flaherty’s’ math just doesn’t add up,” said Mr. McCallum. “Let’s not forget that this government denied that a recession was even coming, foolishly predicting a surplus in last November’s economic statement,” concluded Mr. McCallum. “Now their $34 billion deficit has swelled to at least $50 billion in only 120 days – and this government still doesn’t have economic stimulus money out the door.”
