Deb Higgins (Moose Jaw Wakamow NDP MLA) and Warren Mitchelson (Moose Jaw North Saskatchewan Party MLA) agreed the proposed federal budget announced in parliament on Thursday was perhaps too optimistic in its long-term projections
The proposed budget forecasts a deficit of $53.8 billion this year, down slightly from the most recent $56-billion projection, and red ink totalling $49.2 billion in 2010-11. According to Finance Minister Jim Flaherty, deficits will plunge dramatically after that, falling to a modest $1.8 billion budgetary shortfall in 2014-15.
Reiterating the sentiments of his party’s finance minister, Rod Gantefoer, Michelson told the Times-Herald he believes the feds are perhaps being too optimistic when looking at the budget projections for five years in the future.
He said the Saskatchewan government learned last year about the dangers of using too much optimism when budgeting, after projected revenue from the province’s potash industry did not match the actual industry outcome.
Higgins agrees the government’s projections at paying down the deficit seems too optimistic.
For more on this story, read an upcoming edition of the Times-Herald.
