This document provides a summary of Canada's fiscal situation in July 2017 according to Paul Young CPA, CGA. It outlines key figures on government revenues and expenses, including a deficit of $28 billion for 2017-2018. It also summarizes the small business tax proposal, GDP growth slowing to 4.0% in July 2017, concerns around the upcoming federal carbon tax in 2018, and rising costs of refugees which may reach over $1 billion for 2017-2018. Provincial transfers from the federal government are also discussed.

1. FISCAL MONITOR –
CANADA – JULY 2017
BY: PAUL YOUNG CPA, CGA
DATE: SEPTEMBER 28, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• Revenue and Expenses
• Expense Analysis
• Small Business Tax Proposal
• GDP / Morneau
• Carbon Tax
• Refugee Costs
• Government Transfers

4. REVENUE AND EXPENSES
Source - https://www.fin.gc.ca/fiscmon-revfin/2017-07-eng.asp

5. EXPENSE ANALYSIS
Source - https://www.fin.gc.ca/fiscmon-revfin/2017-07-eng.asp
• Clean Technology losing Money -
http://www.bnn.ca/awash-in-red-ink-
canadian-clean-tech-struggling-
despite-ottawa-s-green-goals-
1.729679
• Slow transfer to provinces and
municipalities for infrastructure -
http://www.on-
sitemag.com/features/government-
spending-infrastructure-slowly-
making-way-pipe/
• Provinces are now receiving 3% for
their transfers (HST and CST)
• Government is still on track for $28B
deficit for 2017-2018
• Moneys for refugees could cost over
$1B for 2017-2018 -
https://www.thestar.com/news/canad
a/2017/06/15/wait-time-for-canadian-
asylum-claims-could-hit-11-years-
cost-29-billion-government-
analysis.html

6. SMALL BUSINESS TAX PROPOSAL
Source - https://globalnews.ca/news/3777797/bill-morneau-town-hall/

7. GDP / MORNEAU
• http://www.cbc.ca/news/politics/morneau-town-hall-1.4313754
https://www.slideshare.net/paulyoungcga/gdp-economy-canada-july-
2017
Canada GDP year over year growth is 4.0% for July 2017 which is down
from year over growth in June 2017 which was 4.5%
There are few issues of concern with GDP
 Housing prices have been correcting for the past few months
 Oil production has regained production lost due to Fort McMurray
fire. The problem is oil prices cannot stay above $50/barrel
 GDP should be impacted through either Ontario minimum wage
hike or national carbon pricing
 The goods services sector has 74K less jobs then in July 2014. The
growth in employment has been led by the service sector. The
service sector pays about 30% less than the goods producing
sector.
 Government has been slow with infrastructure moneys -
http://www.on-sitemag.com/features/government-spending-
infrastructure-slowly-making-way-pipe/
• The average growth for two years is 2.3% which is similar to past 15+ years. The growth pulls back in
2019 so why did Minister not mentioned this statement in his preamble?

8. CARBON TAX (2018)
• Source - http://business.financialpost.com/commodities/energy/ottawas-carbon-
tax-plan-to-shrink-economy-by-3-billion-hurt-loonie-in-2018-study

9. REFUGEES COSTS
Source - http://nationalpost.com/news/politics/more-than-32000-asylum-seekers-have-arrived-in-canada-so-far-in-2017

10. TRANSFER TO THE PROVINCE
Source - https://www.winnipegfreepress.com/local/pallister-government-considering-health-care-
premiums-444236343.html