[jks]

The federal budget is going to be released on January 27th. So far, the conservatives have hinted a Southern Ontario Development Agency with about $250 million. Other economic stimulus is expected. Harper did hint at some transit spending during his interview with Global National.

Harper has been releasing various details about the budget before it is actually released. this is likely because only about 53% of Canadians support such a big deficit.

The deficit numbers vary hugely with the smallest guesses at around $34 billion, going up as high as $64 billion.

 

[Observer Walt]

I believe the figure of $64 billion refers to two years ($34 + $30 billion). Several economists have forecast something in the range of about $30 billion per year, for the next 2 - 3 years.

I think people will accept deficit spending for a short period (maybe three years, tops?) Once the recession is over, they will want to see us return to a balnced budget. As a bit of perspective, most recessions last 18 months or less.

 

[jade_lee]

I believe the figure of $64 billion refers to two years ($34 + $30 billion). Several economists have forecast something in the range of about $30 billion per year, for the next 2 - 3 years.

I think people will accept deficit spending for a short period (maybe three years, tops?) Once the recession is over, they will want to see us return to a balnced budget. As a bit of perspective, most recessions last 18 months or less.

I don't think this recession is like most other recessions. All the people who claim to be in the know are saying we are living in extraordinary times, including our prime minister. Interesting how we appear to be following in Americas footsteps where our prime minister Harper doesn't appear to have one original idea in how to deal with the bank crisis other than buying up all the risk with our very own sub-prime mortgage industry where the 40 year mortgage (introduced by the conservatives) is geared to either poor or uneducated borrowers. Bailing out failed industries instead of changing trade laws isn't looking too bright for our future and any of us who have experienced tough times know that our banks are out for themselves just like our political parties appear to be. Canadians should be demanding Canadian solutions but then again our prime minister is very selective when it comes to what he defines as Canadian.

I can't wait to see the budget. I look forward to others in parliament dealing with our financial crisis...recession? regression is more like it!

 

[Tewder]

Subprime mortgages are very rare in Canada, and high-ratio ones require mortgage insurance. The hit on Canadian banks has been in asset-back investments involving massive portfolios of subprime mortgages in the States. Banks in many other nations have been hit hard by this too.

Wow, looks like Harper is doomed if he spends or if he doesn't. I'm not sure what other kind of original strategy you are looking for in the budget? Most western developed nations will be using similar tactics, no?

 

[Whoaccio]

So far, the conservatives have hinted a Southern Ontario Development Agency with about $250 million. Other economic stimulus is expected

This is such a horrible idea it boggles the mind. These 'regional development' schemes keep getting thrown around like they do something when all evidence shows they don't, The North? Failure. Atlantic Canada? Failure. Quebec? Failure. Quebec's own regional development plans (i.e. Gaspe, Abitibi)? Failure. Northern Ontario? Failure. Western Canada? Failure. Why the hell would it work in Southern Ontario when it hasn't worked anywhere else? It would be better for Harper to take the hypothetical $250m and give the region special tax incentives while making sure the US border becomes more permeable to Canadian goods (the new Detroit-Windsor bridge, for instance, would be a good idea).

 

[afransen]

Wow, looks like Harper is doomed if he spends or if he doesn't.

That's why parties hate governing through recessions. I think its just deserts. I look forward to their eventual defeat in the next election.

 

[Tewder]

Just desserts for what? What has been so egregious for you?

 

[isittimetomoveyet]

$7 billion?

So, suffice it to say that if this is all for infrastructure spending, I will be thoroughly disappointed. I thought we would be looking in the name of $15 billion specifically for infrastructure.

But perhaps there is a specific fund/announcement that will pertain directly to public transit across the Country.

Any thoughts?

http://www.thestar.com/news/canada/article/577330

 

[Hydrogen]

I'm no big fan of the Conservatives, but it's not like they brought the recession on.

If the other parties pass the budget, then they essentially agree with it. It would not be surprising if the Liberals even attempt to take credit for it.

 

[lordmandeep]

The deficit is 34 billion but remember 15 billion is the shortfall they have without spending an extra dollar from last year.

 

[lordmandeep]

well the Tories screwed themselves when they gave the 2nd part of the GST cut.

I knew that was going to bite us in the ass latter.

 

[jks]

of the 7 billion, only 4 billion is for transportation infrastructure (ie roads, transit), while the rest shows itself as 2 billion for universities and colleges, and one billion for a green infrastructure fund (whatever that is?!?!)

edit:forgot to mention...the provincial government promised to match whatever the feds give Ontario dollar-to-dollar.

 

[jks]

$7 billion is now announced for infrestructure. I would've hoped for more, but that's what we get. I breaks down like this:

-$4 billion for transportation infrastructure
-$2 billion for universities and college repairs
-$1 billion for a green infrastructure trust fund (can someone explain to me what that is?)

Thankfully, Ontario Finance Minister Dwight Duncan has pledged to match whatever the feds spend on infrastructure dollar-to-dollar. FInally some good news, although I really have no idea how much of all this Toronto will get.

 

[afransen]

For the funds to be released, Ontario and Toronto would need to pony up $1 each (Feds only pay 33%). Thus, Ontario will have to cover both thirds for provincial and municipal. Maybe this will go toward MoveOntario (far less than what is needed)?

We should also be skeptical that any of this money will be spent. Supposedly, most of previously announced infrastructure funding (from years ago) is being tied up by the Conservatives, even once it became evident that stimulus is needed. Thus, I expect them to announce it, take the credit, and sit on the funds for the next couple years.

 

[cacruden]

well the Tories screwed themselves when they gave the 2nd part of the GST cut.

I knew that was going to bite us in the ass latter.

They could still raise the tax again, much harder to cut all the social program spending that the Liberals had promised to use that money for (i.e. child care).