In early March 2011, the federal government of Canada announced that it would be cutting over $10billion dollars in spending in the upcoming 2011 annual budget. This includes massive cuts to environmental monitoring bodies like Environment Canada and Natural Resources Canada. Also included in these cuts is a $2.6 billion cut to employment insurance recipients.
At the same time, spending for the national security apparatus is ballooning, with the military expenditures projected to cross the $20 billion mark this year. The March announcement also included a 10% increase in spending across the board for public safety departments and national security agencies, building on the $7.9 billion forecast to be spent last year. This includes a 21%, or $521.6, million increase in spending on prisons and a 14%, or $227 million, increase in spending at Canadian Border Services.
All the while, the government is also giving away $1.4 billion each year to oil and gas companies, the majority of which goes directly into the Alberta tar sands
Be sure you click on the graph to enlarge it.
This graph is completely distorted, as some numbers are absolutes, some are % increases, and some are presented as dollar decreases, and I don't believe it paints an accurate picture. The way government budgeting works, is that it automatically goes up each year to adjust for their forecasts for inflation (which are almost always higher than actual inflation) and other automatic increases. Therefore, when politicians talk about budget cuts, it typically means that instead of a budget increasing 10% like automatically planned, it will only go up 9% - but it still increases in dollars. So politicians pat themselves on the back, but they are merely cutting the planned growth rate.
ReplyDeleteIn that context, lets look at some of the stats on this chart. For example, the oil and gas subsidies on here are $1.4b. From what i can gather, the subsidy number was slightly higher in 2000 and the same in 2005 and 2009. So adjusted for inflation, oil and gas subsidies have come down while likely 95% of government budget items since 2000 are dramatically up (as we know the size of government keeps increasing). What was the budget for Environment Canada in 2000 and 2005, and 2009? I would guess that it is going up dramatically, but I don't know. But net, the graph tells me almost nothing about where dollars are going, or the trend over time.
Canada has done a very good job - relative to other countries - the past 3 years on budgetary matters. Its deficit to GDP is amongst the lowest of the major economies, and it has deteriorated far less than most in that period. Meanwhile, more progressive governments spent far more than Canada on useless stimulus programs that did little more than crush the financial health of those countries (US deficit to GDP went to double digits) slow economic growth, and widen the gap between rich and poor.
Well I am all for gov't cutting spending - not thatI am in favour of where they cut it - for instance in the environmental side cut David Suzuki's salary completely.(note him making comment in Wpg Free press on Lake Wpg and as much as I could read I failed to see any credit/blame go to our US friends, which is why I mention him)
ReplyDeleteAs to election - All our minority parties have again forced an election that NOBODY REALLY wanted as there is NO alternative. Between Iggy whom I wouldn't trust as far as I could throw him and mister jack - lets spend some more money -what choice do we have? Does Harper make mistakes yes should he be held to task yes but now for the 3rd or 4th time in 7 years at a cost of likely 100's of millions of dollars we again have to go to the Polls -I will vote but NOT for any party that voted deliberatly to have this election.
The article notes the increase in Military and National Security spending. How do we compare to other developed countries? It is embarassing when we send our troops on peacekeeping missions with sticks and stone knives and equipment that third world countries wouldn't use. Not a fan of military exercise but if we send our people into that kind of area - let's do it right give them the tools so they can be effective in what we ask them to do. Personaly Canada needs way more security in some areas.
I will quit there for now as my neck is getting too red.
K1