“In response, deficit elimination timelines could be accelerated, recovering ground given up in the past year. Alternatively, some governments will be in a position to ease up on spending restraint without jeopardizing budget targets, hinting at a less onerous medium-term fiscal drag. Incremental wiggle room also creates scope for new fiscal initiatives that could hold the key to re-election for some.”
They don’t see much change in the 2013-14 fiscal year, but the two years after that are another matter.
Indeed, Mr. Lovely and Ms. Enenajor believe a pick-up in economic growth will shave $30-billion off the deficits of the federal and provincial governments in that two-year period.
“That already sounds impressive enough,” they said.
“But if anything, Canada’s finance ministers could end up being even more pleasantly surprised. Powered by external markets, we see Canadian nominal GDP growth topping 5 per cent in both 2014 and 2015, comfortably north of the weighted average growth forecast built into current fiscal plans.”
While Canada boasts a triple-A rating, better-than-forecast timelines would “defuse a lingering threat” to the ratings of some provinces, they added.
Game of thrones
No, they’re not like the rest of us, but kings and queens are grappling with austerity, too.
In Britain, the royal family has faced cutbacks and the way in which it is paid in the post-crisis era, and is under scrutiny for expenses.
In Spain, according to The Telegraph, King Juan Carlos decided recently to forego the €21-million ($28.4-million Canadian) royal yacht. (I know, right? Unemployment in Spain is at 27 per cent.)
And now, the royals of Belgium are going to have to pay taxes for the first time, Reuters reports.
This follows a controversy surrounding Queen Fabiola and her reported plans to skirt taxes via an estate transfer.
According to the report, the queen’s funding will also be slashes to €450,000, or some $590,000 U.S. from €1.3-million. (I know, right?)
Back to the Commonwealth, here’s what the Monarchy says on its official website: “The Monarchy has sometimes been described as an expensive institution, with Royal finances shrouded in confusion and secrecy. In reality, the Royal Household is committed to ensuring that public money is spent as wisely and efficiently as possible, and to making royal finances and transparent and comprehensive as possible.”
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