Prime Minister Stephen Harper knows that things are bad. But he might not know just how bad. According to parliamentary budget officer, Kevin Page, Harper’s government has grossly underestimated the impact of the recession in Canada. In particular, Page stresses that Harper’s pledge to stop running annual budget deficits in five years is doomed to fail. By 2013-14, Canada will likely still be running a deficit of almost $17 million, Page says. He predicts that the cumulative federal budget deficit will hit $155.9 billion over five years. His forecasts are gloomy, but since being appointed budget officer last year, Page’s economic predictions have consistently been more accurate than those of Finance Minister Jim Flaherty.
Harper: still dreaming?
Budget watchdog accuses PM of underestimating the recession
FILED UNDER: Canada