DELUSION AND THE ORIGINS OF A DEBT SPIRAL

Guest Post Written by "JM"

As a regular follower of provincial politics[1] and current affairs, I was generally aware that spending by the provincial government had increased, since 2006, to levels well outpacing inflation.  Yet it was not until the release of the 2015 Budget, and the province’s “5 Year Plan”[2] for fiscal recovery, that I awakened to true state of the provinces finances.  The $1.3 billion projected deficit in that year was enough to garner attention. 

However, it was the government’s prediction of a nearly $2 billion increase in revenue, during the period 2015-2020, as the main driver for a return to balanced budgets, that seemed unlikely enough to be incredulous.  

RIGHTSIZING EXPENDITURES (CONTINUED): A BUDGET COLLOQUY

Guest Post Written by JM

Rightsizing Expenditures – Where the Real Work Is Needed (Installment II of Part V)

In the first part of “Rightsizing Expenditures”, I presented the first five ideas to reduce the annual provincial budget by 10%.  This is a continuation of that post; the ideas discussed taken together, constitute an attempt to identify measures to achieve this recommended target.  As a spoiler alert I should inform you, despite all the austerity measures proposed, I was unable to achieve the 10% target.  Nevertheless, here are my additional views on the subject:

2015 BUDGET: WHO IS AFRAID OF THE FISCAL CLIFF?

Minister Ross Wiseman called the Budget “a measured approach to dealing with the fiscal realities facing…” the province. 

No, it wasn’t. 

It was an awful example of political leadership.

Worse, virtually every group cheered him on. The exception was the NL Employers’ Council.

"We're here for a spending issue not necessarily a revenue-generating issue and if taxpayers don't hold them accountable they'll be back again — whatever government is in power — looking for tax increases again."

That’s Richard Alexander. He is spot on.  He’s just bloody late.  His bosses at the Employers’ Council lost their tongues over Muskrat Falls.  None had the courage to help stop this madness right from the beginning. 

It is hard to win back credibility when it is squandered. But they should keep trying.