Deficit elimination target missing from throne speech
Premier David Alward had promised to erase deficit by 2014
CBC News
Posted: Nov 28, 2012 7:20 AM AT
Last Updated: Nov 28, 2012 7:51 AM AT
Premier David Alward did not specifically include a promise to erase the province's deficit by 2014 in Tuesday's throne speech. (CBC)
The Alward government is continuing to talk tough about putting the province’s fiscal house in order, but Tuesday’s throne speech did not offer a commitment to erasing the budget deficit by 2014.
The Progressive Conservative government's third throne speech focused on rebuilding the province’s economy and outlined plans on how to streamline government bureaucracy.
But the commitment to eliminate the deficit by 2014, just before the next provincial election, was not a part of the throne speech.
At a news conference, Premier David Alward talked a lot about sound management without ever re-committing to hitting the zero-deficit target.
"We're focused on the work we need to do, number one, this current fiscal year, and then be able to build a budget for next year,” he said.
Finance Minister Blaine Higgs recently announced how the province’s deficit had nearly doubled to $356 million.
When the finance minister released his March budget, he also estimated the provincial government would have a small surplus in 2014-15.
However, the provincial government’s second quarter fiscal update indicated lower-than-expected revenues from personal income taxes, corporate income taxes and the Harmonized Sales Tax are to blame for the ballooning budget deficit.
Adding to the Alward government’s financial headache is the growing jobless rate. Statistics Canada reported October’s unemployment rate stood at 11.6 per cent, the highest level since May 2003.
Liberal Leader Brian Gallant says the Alward government’s approach to kickstarting the economy isn't working.
"The results are 11.6 unemployment, the results are deficit that is over $350 million, the results are we have a debt that's over 10 billion," Gallant said.
Gallant, however, will be debating the Alward government from outside the legislature.
The new Liberal leader does not have a seat in the legislature and it is unclear when there will be an opening for him to run in a byelection.
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