BUDGET 2013. THE PAIN HAS ONLY BEGUN

John Meaney: Rant N' Roar

Likely, I was not the only one with a sense of unease after last week’s Provincial Budget.  Two essential facts remain inescapable.  The current fiscal mess is a product of poor management rather than one of resource revenue volatility.  Secondly, Budget 2013 makes abundantly clear that “right sizing” the public sector, after a decade of fast money, is easier said than done. 

A few weeks ago, the Minister of Finance threw out a forecast deficit of $1.6 billion.  In the end, the Budget recorded a deficit of $564 million.   

The Budget numbers are one thing, but the question most people want answered is: has the Government reclaimed control over spending now that per capita expenditures have reached 150% of the Canadian average? Have we backed away from the fiscal cliff?  Is the “10 year Sustainability Plan” a “fix” for bad budgetary behavior?