Fiscal update - Canada - Federal Liberals - April 2016 to February 2017
1. Fiscal Update –
Canada – Federal
Liberals – April 2016
to February 2017
Paul Young CPA, CGA
May 1, 2017
2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com
3. Agenda
• Summary (Revenue and Spending)
• Wealth Distribution
• Federal Transfers
• Direct Program spending
4. Government Revenue and
Spending
• Source – Government of Canada
GDP Change
Job Creation
• Bulk of new jobs are part-time
• GDP has rebounded due rebound in oil prices
• Revenues are flat year over year
• Program spending is growing at rate 3x GDP
5. Program Spending / Wealth Distribution
Source – Federal Government of Canada
EI Benefits
Canada's February 2017
unemployment rate dropped to
6.6 per cent last month, its lowest
level in more than two years,
Statistics Canada said Friday, as
the economy created more jobs
than expected even with fewer
people looking for work.
Elderly Poverty
The report notes that the poverty rate
for elderly people continues to rise
and, when it comes to child poverty,
only the U.S. has a higher rate than
Canada.
CBC – April 5, 2017
CTV – March 10, 2017
• Liberals goal was to reduced child poverty from 11.7% to 6.7%
• The child poverty rate for Canada as a whole was 14.7 per cent in 2014. The national
child poverty rate has been relatively constant for the past several decades, fluctuating
between 14 and 17 per cent over the years.
CBC news and Conference Board of Canada
6. Government Transfers
• Federal Government of Canada
The Fraser Institute concludes that “simply
put, this paper shows that the current
healthcare arrangements, which result in the
level of spending observed and expected, do
not seem sustainable over the next 15 years
from today’s vantage point.”
Questica.com – April 27, 2017
7. Other Transfers
• Government of Canada
• Federal funds have been
slowed to Cities and
Communities
• Government has made
announcements on transit
funding in March 2017
8. Direct Program Spending
• Government of Canada
A whistleblower who went
public about an investigation that
identified questionable financial
activity by former leaders at
her Alberta reserve near
Edmonton is urging Ottawa to
strengthen rules for First Nation
bands around financial
transparency and accountability.
CBC – April 5, 2017
Analytica Advisors said in its
seventh annual report that
despite years of publicly funded
support for research and
development, losses for clean
tech companies widened to $3.56
billion in 2015 from $3.18 billion
in 2014, and shareholder returns
limped in below the Canadian
average
BNN – April 20, 2017
10. Summary
• Deficit has grown to 11.4B (April 2016 to February 2017)
• Infrastructure money has not flowed to the cities
• Clean technology companies continue to lose money
• Despite strong employment and GDP numbers the government’s revenue is flat
for 2016-2017 as compare to 2015-2016
• Government target of 6.7% drop for child poverty is a stretch target
• Provinces continue to struggle with delivery of healthcare dollars
• Canada has a structural deficit