Winnipeg Free Press - PRINT EDITION
Flaherty to issue fall economic update
OTTAWA, Ont. -- Finance Minister Jim Flaherty is issuing the fall economic update today, a mid-term report card many expect will show a modest deterioration in the government's finances.
A senior government official said Canadians should not expect any big surprises in the update, such as new tax or spending measures.
Last month, Flaherty revealed government revenues had been lower than expected due to an average five per cent drop in the global price of resource commodities Canada exports to the world.
In terms of growth, Flaherty is using a new, lower economic consensus forecast for real gross domestic product growth and also inflation-excluded nominal GDP, which bears more directly on tax revenues.
The new nominal growth estimate is for a 3.4 per cent increase this year, down from the 4.6 per cent advance forecast in the budget, and for a 4.0 per cent gain in 2013, down from the previously expected 4.4. Subsequent years were adjusted moderately upwards.
Using the new estimates, the TD Bank calculates revenues would be about $1.8 billion lower than projected this fiscal year, which ends March 31.
That may lead to a modest short-term hit on Ottawa's bottom line.
Given what the minister has described as an uncertain and risky global outlook, Flaherty may also build in a bigger margin for risk on his deficit projections, which could delay -- on paper at least -- the government's timeline for eliminating the deficit.
In the budget, Flaherty had pencilled a $21.1-billion shortfall this fiscal year, followed by deficits of $10.2 billion and $1.3 billion in the subsequent two years. The 2015-16 fiscal year would see a surplus for the first time in almost a decade.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition November 13, 2012 A8
Please use the form below and let us know.
Having problems with the form?Contact Us Directly
(1 of 10 articles for today)10:22 AM 0
Photo Store Gallery
- WestJet plane lands safely in Toronto after reporting engine trouble
- Sweeping report released on Toronto police encounters with those in crisis
- Cdn activists to lug jugs of water to Detroit in H2O march to help residents
- Calgary man reunited with his beloved little red Corvette named Betsy
- Fox gets famous after photographed sleeping aboard Ottawa city bus
- Man with air gun arrested at pro-Israel rally held at Calgary Jewish centre
- Canadian-Egyptian journalist, Al-Jazeera colleagues did the 'devil's' job: judge
- Charities may be asked for donor lists under CRA proposal floated by minister
- Defence minister to deploy frigate to Mediterranean for ongoing NATO mission
- Restrictions on transporting firearms to be eased under federal proposal
- Ontario medical student, girlfriend among passengers of doomed Malaysian flight
- Mayor of Montreal-area community dies after being stung by wasps
- RCMP charge Sen. Mike Duffy with fraud, breach of trust and bribery
- Police investigate suspicious death at Pemberton, B.C. Music Festival
- Canadian teacher detained in Jakarta jail on accusations of child sexual assault
- Duffy accused of charging for personal trainer, makeup artist, funeral travel
- Conservative party president's 7-year-old daughter hit by minivan, killed
- Big Lake Ontario shark hoax shows risks posed by viral marketing, experts say
- New report questions Canadian Ukraine election monitoring missions
- Cdns at odds with Harper gov't priorities: Finance Canada focus-group report
- Family of missing boy, grandparents won't give up on finding them alive
- Moms change diapers, Dads form leaders: Justice minister's emails to staff
- Calgary police confirm violent incident in case of missing boy, grandparents
- $20,000 per person:Activists push for guaranteed minimum income for Canadians
- 'We're lucky to have her in our lives;' baby survives crash that killed mother
- Suspect in case of missing grandparents and child to make court appearance
- Investigators bring in boat in search near Calgary-area acreage in missing family case
- Calgary police say there are other leads in case of missing boy, grandparents
- Police say search near Airdrie part of probe into missing Calgary residents
- Calgary police finish looking for evidence in missing couple's home
Ads by Google