OTTAWA—The Alternative Federal Budget (AFB) Economic and Fiscal Update, released today by the Canadian Centre for Policy Alternatives, projects that the federal government will have budget surpluses of $4.2 billion in 2006-07 and $4.0 billion in 2007-08.
The report, by CCPA Senior Economist Ellen Russell and CCPA Research Associate Mathieu Dufour, finds that the days of large windfall surpluses are over. The spending and tax cut choices that the Conservative government made in its first budget will make double-digit budget surpluses impossible in upcoming years.