When the impacts
of the Conservative platform are added to the status-quo base
case, the party would run a cumulative deficit of $11.4 billion
over five years. In implementing their platform promises, the
Conservatives would run annual deficits of $0.7, $3, $4 and $5.6
billion.
Between 2004/05
and 2008/09 the Liberal platform would
produce a cumulative surplus of $24.2 billion--consistent
with the Liberal government's practice of generating large surpluses
and using them to pay down the debt.
The NDP
platform would result in a cumulative surplus of $14.6 billion,
which is considerably more than the $5.3 billion in cumulative
surpluses that the party claims in its platform.
"Once
again the Liberals underestimate fiscal capacity for program
spending. This is likely to result in diverting 'surprise'
surpluses to debt repayment," says CCPA Research Economist
Ellen Russell.
"Furthermore,
higher than expected surpluses for the NDP provide extra capacity
to enact further spending increases, reduce tax increases, or
absorb any unanticipated revenue shortfalls," adds CCPA
Research Associate Sheila Block.
"The
Conservatives cannot pay for what they say. Their cumulative
budget deficit of $11.4 billion obliges them to explain how they
intend to deal with this shortfall--by either cutting spending
or increasing the federal debt," concludes Russell.
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