More than six years after the recession of 2008-09, eight out of 10 provinces (including Alberta, which released its budget yesterday) are currently in deficit, and the newly formed federal government has committed to falling back into deficit.
Government Spending & Taxes
Today's Alberta budget forecasts a $6.1 billion deficit for this fiscal year, and the province is on track to record 10 budget deficits in 11 years.
A popular narrative holds that the recent fall in oil prices is chiefly responsible for the Alberta's current deficit. The evidence does not support this view.
Before we buy boatloads of new infrastructure in Canada, we should ask why current infrastructure is crumbling.
When tax rates are increased, tax filers—especially upper-income earners—are able to find legal means to mitigate those tax increases.
Let’s look at the expected fiscal balances in Canada’s 10 provinces for 2015/16.
B.C. Premier Christy Clark recently said that another plebiscite would be required if Metro Vancouver municipal governments want a new tax to fund a transit-heavy capital plan.
The need for infrastructure spending in Canada is getting a lot of attention this election, with all the parties presenting platform planks on the amounts they would spend.
The current election campaign has seen a lot of attention focused on balancing the federal budget and the size of the federal deficit. Perhaps some historical perspective will better inform the debate.
This fiscal year, Canada's federal government will send more than $68 billion in transfer payments to the provinces.
Subscribe to the Fraser Institute
Get the latest news from the Fraser Institute on the latest research studies, news and events.