The Parliamentary Budget Office has announced that the government will miss it target to balance the budget in 2015-16. Jean-Denis Fréchette, the Parliamentary Budget Officer has indicated that due to declines in real GDP (Gross Domestic Product), the government will take in less money, and will be in deficit by at least $1 billion.
The federal government responded by saying the Parliamentary Budget Office didn’t take in to account the surplus they realized in April and May. The Conservatives insist they are still on track to balance the budget by the end of the year.
The opposition parties have criticized the government for fudging the numbers to show a budget surplus this fiscal year. They say the government is only showing a surplus because they sold shares in General Motors and took $2 billion of the government’s contingency fund. They criticize the Conservative’s tax cuts for taking revenue away the government and it’s ability to provide services to Canadians.
While the government may be able to balance the budget this year, the Canadian economy is showing signs of slowing down. In September, the data will show whether or not the Canadian economy is technically in recession. Are they making the balanced budget a larger priority than it deserves? Should the government be doing more to boost the strength of the economy? Have your say in the comments below.
For more information on the Parliamentary Budget Office’s report, visit their website.