Saturday, February 28th5.9°C
25355
25158

Oliver says Ontario needs to tackle its large deficit in upcoming budget

OTTAWA - Finance Minister Joe Oliver says the newly-elected Liberal government in Ontario should use its first budget to tackle the province's serious deficit problem.

The federal finance minister says his government will almost certainly balance its budget next year and that Ontario could take a lesson from that example.

Ontario, which holds a $12.5-billion deficit, elected a Liberal government last week.

The minister made the comments after meeting more than a dozen private sector economists at his office, the first such meeting for Oliver since being named finance minister in March.

The economists advised Oliver that the weather-related first quarter economic dip in the economy will shave about one-tenth of a percentage point from growth projected in the 2014 federal budget.

But that likely won't impact government revenues, they said. In fact, revenues may be higher than expected because strong oil prices likely will translate in to higher tax revenues.

Bank of Montreal chief economist Doug Porter says barring an unforeseen economic shock, he believes Ottawa may get to a balanced budget position sometime during the current fiscal year.

Once the budget is balanced, Oliver says the government can proceed to fulfil its election promise and introduce income splitting.

The minister also says he does not believe Canada is experiencing a housing bubble, although he adds that the government still plans new measures to lessen the reach of Canada Mortgage and Housing Corp. in the mortgage insurance market.

The Paris-based OECD recommended last week that Ottawa reduce the percentage of mortgage loan CMHC insures from the current 100 per cent and Oliver says that is one avenue the government could pursue.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15234.34-6.82
S&P CDNX706.73+5.80
DJIA18132.70-81.72
Nasdaq4963.528-24.362
S&P 5002104.50-6.24
CDN Dollar0.7996+0.0004
Gold1203.00+6.10
Oil52.14+1.53
Lumber297.20+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.38+0.08
Copper Mountain Mining1.30+0.04
Colorado Resources0.15+0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.235+0.025

 



24502

FEATURED Property
2194762For Sale 3 bedroom 3 bath townhouse for sale in Nuevo Vallarta
$110
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


24850