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Showing posts with label NL budget balance. Show all posts
Showing posts with label NL budget balance. Show all posts

Thursday, 1 December 2016

A TALE OF JETHRO BODINE IN THE PREMIER'S CHAIR

If you read last Saturday’s Telegram containing the James McLeod story “Ball falls, gets back up” you might be left with the impression we shouldn't worry about the province’s fiscal problems. How Ball actually "gets back up" is unclear. But equally doubtful is Ball's description of how he plans to get the budget back to balance: The Telegram paraphrases the Premier:

“The government has already hiked taxes basically as high as possible in the spring budget, so over the coming years it will need to cut roughly $100 million per year to get back to balance by 2022.”

Hold it there! The budget update confirmed a deficit this year of $1.58 billion. That is just the deficit on current account – or as some refer to it the grocery money. 

Even Jethro Bodine - the dimwitted nephew of Jed Clampett’s 1960s ‘The Beverly Hillbillies’ TV series - wouldn't need help with this problem. It is obvious that at the rate of a $100 million annually it will take “roughly” 16 years, possibly out to 2033, to “get back to budget balance” and then only with respect to the current account.