Conservatives' 'formula for fudge' will raise taxes: Goodale

Last Updated: Friday, January 13, 2006 | 3:02 PM ET

CBC News

The Tory election platform will likely result in raised taxes, program cuts and a deficit, Finance Minister Ralph Goodale said Friday.

"It appears to be a formula for fudge," Goodale said in a news conference in Ottawa, hours after Conservative Leader Stephen Harper released his party's plan.

Harper announced Thursday that Canadians can expect a Tory government to spend $60 billion for new programs over the next five years, which includes $45 billion in tax breaks.

Finance Minister Ralph Goodale in Ottawa Friday

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But Goodale said the plan makes revenue assumptions that appear to be $4 billion higher than independent experts say is reasonable.

He said the plan also lowballs expenditures by $26 billion over five years.

Goodale said the combination of those two factors results in a "$30 billion hole."

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He said the Tories will take their projected $22.7 billion in surpluses over the next five years and use it to address the fiscal imbalances with the provinces. Goodale said that will leave the Conservatives with a bottom line of zero.

He said when you add the $30 billion hole, the Conservatives will either have to raise more taxes than they've indicated, cut more programs, or run a deficit.

"Tax cuts, program cuts and a deficit all at once. It appears that these figures are a formula for that kind of result," Goodale said.