Fiscal Monitor for April – September 2017

 

The federal government posted a budgetary deficit of $3.2 billion in September 2017, compared to deficit of $2.4 billion in September 2016.

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THE GOVERNMENT NEEDS A NEW APPROACH TO INCOME TAX REFORM

 

What a mess the Finance Minister, the Finance Department, the Prime Minister’s Office, and the Privy Council Office created, over the past few weeks, in their attempt to reform the taxation of Canadian Controlled Private Corporations (CCPC).

The Finance Minister has now backtracked on the most contentious of his original proposals, and has made some of the other proposals more palatable.  Given all this, why did the Finance Minister even bother with his July 18th proposals in the first place?

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LESSONS FROM THE OCTOBER FISCAL UPDATE

 

Poor Mr. Morneau, his credibility as Finance Minister already in the tank, desperately needed to do something in his Economic and Fiscal Update to begin restoring it. And there was a lot for him to brag about.

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TAX REFORM IS NEVER EASY

 

Finance Minister Bill Morneau did not have a very good summer. So far the fall has also not been good to the Finance Minister and, unfortunately, it is unlikely that the months leading up to the 2018 budget will get any better for him. He has only himself, or perhaps his department, to blame for his unhappiness.

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Fiscal Monitor for April – July 2017 Budget Outlook improving compare to Last Budget


The federal government posted a budgetary deficit of $193 million in July 2017, compared to deficit of $1.8 billion in July 2016. This improvement was largely attributable to strong growth in tax revenue, up 9.5% over the same period last year.
For the first four months of fiscal year 2017-18, the federal government recorded a deficit of $109 million, compared to a deficit of $2.8 billion for the same period in 2016-17. 

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Deficit for 2016-17 Much Lower than Forecast: Future Deficits Could Also Be Lower Final audited financial results for 2016-17 were released on September 19th by the Department of Finance in the Annual Financial Report. The deficit for 2016-17 was reporte


Final audited financial results for 2016-17 were released on September 19th by the Department of Finance in the Annual Financial Report.  The deficit for 2016-17 was reported at $17.8 billion (about 0.8% of GDP)  $11.6 billion lower than that forecast in the March 2016 Budget and $5.3 billion lower than the revised estimate contained in the March 2017 Budget. Over half of the better-than-expected outcome relative to the March 2016 Budget was attributable to the inclusion of a $6 billion Contingency Reserve, which was not required.

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