Image by Robbie's Photo Art via Flickr
More bumps for the Liberal Express. Can someone page Peter Donolo for talking points to talk down the good news on the Liberal Express.
When the financial crisis and recession began, Canada was in much better fiscal shape than almost any other industrial country. The federal government and some provinces spent a decade slowly paying down debt. The federal debt-to-GDP ratio declined from 68 per cent in FY1995-96, to just 29 per cent in 2008-09. Most provinces also saw an improvement in the public debt load.
In comparison to the federal outlook, provinces, most notably Ontario, now face a structural fiscal challenge. During good economic times earlier in the decade, many provinces ramped up expenditures on priorities such as health care. In this area, spending increased by an average of 7 per cent annually over the last five years.
Notwithstanding the structural fiscal challenges of the provinces, Canada is in a much stronger fiscal position than almost every other industrial country. This bodes well for the performance of the Canadian economy as we navigate through stormy global seas. - Canadian Feds Ahead of Plan on Fiscal Re-balancing
This will be another story on the economy that won't get significant attention in our mainstream news. Instead they will look for spinning negative stories to push their own agenda.
The provinces need to reign in their spending.