For Stephen Harper, the only thing that matters about the 2009 budget is that it meets the political imperatives he imposed on himself with his disastrous December fudgit-budget.
On that front, he and we are in the hands of Liberal leader Michael Ignatieff.
But for Canadians, the only thing that really matters is how effective the budget will be as a response to the biggest economic crisis to hit this country in more than 75 years.
The budget’s potential effectiveness depends on the answers to three key questions:
Government finance
OTTAWA -- Today’s federal budget leaves hundreds of thousands of vulnerable Canadians hanging on a very short rope and won’t provide the immediate stimulus our economy needs, says the Canadian Centre for Policy Alternatives (CCPA).
The budget fails to expand Employment Insurance (EI) to ensure laid-off Canadians are eligible for benefits and its infrastructure promises require the provinces and municipalities to match funding -- a condition that will stall many projects.
OTTAWA— The January 27 federal budget will be one of the most important in Canada’s history and should meet five key tests, says the Canadian Centre for Policy Alternatives (CCPA).
“What’s in this budget matters, more than ever,” says CCPA Senior Economist Marc Lee. “Canadians expect a budget that will stave off the worst of the current recession, keep and create jobs, and lay the groundwork for a fairer, greener, and more sustainable economy.”
The five tests for next week’s federal budget:
OTTAWA – Le budget fédéral du 27 janvier sera l’un des plus importants de toute l’histoire du Canada et devrait respecter cinq critères essentiels, a indiqué le Centre canadien de politiques alternatives (CCPA).
« Ce que comporte ce budget a des conséquences plus importantes que jamais » affirme l’économiste en chef du CCPA Marc Lee. « Les Canadiens s’attendent à un budget qui permettra de conjurer le pire de la récession actuelle, de maintenir et créer des emplois et de jeter les bases d’une économie plus juste, plus écologique et plus durable.»
News on Thursday of the government’s stimulus plans should come as a disappointment to Canadians. The Conservative’s continued underestimation of the economic crisis will force Canadians to suffer higher job losses and a longer recession than necessary.
In the weeks leading up to the January 27 federal budget, Jim Flaherty is hinting that he will turn, once more, to the traditional Conservative fix for everything: tax cuts.
Not only is this response yesterday’s news, it is the wrong answer for today’s problems.
Tax cuts are not the kind of economic stimulus that would re-ignite consumer confidence, and there’s proof of that south of the border.