Description: The deficit is still here. And Canada’s Finance Minister, Bill Morneau, says it will be for the foreseeable future. Morneau is projecting a deficit of slightly less than $20 billion for the Canadian government for the 2017-18 fiscal year. He is forecasting the deficit will continue to decline over the next several years, despite Canada’s demographic and economic growth challenges.
Date: January 12, 2018
1) What would you consider to be the “bottom line” on the Government of Canada’s financial statements? Hint: Consult Chapter 10 of Wiley’s Advanced Accounting.
2) What do you think of this fiscal strategy of several years of planned deficits?
3) What do you think of the strategy of building a $1.5 billion risk adjustment into the budget, allowing for such things as bad news from the NAFTA discussions?