Sunday, September 28, 2008

The truth about Conservative Spending

You often hear the opposition claim about the 8% increase in spending by the Conservative Government, but despite what you hear from the likes of Stephane Dion and his "team", the Conservatives are not spending like drunken sailors.

Program expenses for April to July 2008 were $66.1 billion, up $4.9 billion or 8.0 per cent from the same period last year, reflecting an increase in transfer payments, Crown corporation expenses and operating expenses of departments and agencies.

Well, depending on your point of view, that may be debatable. But they are not spending billions by sending it out in brown envelopes, building golf courses or water fountains, nor spending it on a gun registry which cannot work. The Conservatives are not spending it, they are sending it. Sending it to the provincial and territorial governments.

Stephen Harper and his Conservative government have increased transfers to the provinces and territories by a staggering 8.8 percent. Some examples:
  1. Elderly benefits, 3.3% increase
  2. Canada Health Transfer, 6.0% increase
  3. Canada Social Transfer, 10.6% increase
  4. Canada's cities and communities, 23.1% increase
  5. Human Resources and Social Development, 40% increase

All other program spending amounted to a more "misery" 6.5% increase.

Now everyone has the information at hand to dispel the lies the opposition will spread about Conservative spending. The Conservatives are spending more yes, but good chunk of that increase is sent directly to the provinces and territories to provide services to us, the rate payers.

Of course this is still too much money. I agree. The federal government is doing too much, their priorities are scattered, and the spending isn't focused enough. Unfortunately, this is the reality we live in. We cannot expect the Conservatives to have changed this in the short time they have been in minority government.

The fiscal framework is setup so that Ottawa is the arbitrator of our money, they dole it out to the provinces based on their equalization framework, this is to ensure that all provinces can have a similar level of services with a similar level of taxation. In reality, it redistributes the wealth from Ontario, Alberta, and other have provinces to the have nots.

I know this isn't ideal, but until this is changed, this is the reality that the Conservative government lives in.

Transfers increased a total of 3.494 billion (sending), program spending increased 1.398 billion. Debt financing charges decreased 4% from this time last year. The total increase in spending was 4.892 billion dollars.

Remember, billions of the increased spending is not spending at all, it is sending of the money to provinces, territories, and cites. Money that delivers services to you.

We're better off with Harper

3 comments:

Ardvark said...

Dion also likes to remind us about how PM Harper "squandered" 40 billion dollars by paying down our national debt.

If Dion thinks that early debt repayment is squandering money than he is out of touch with good economics, Canadians, and perhaps reality.

Anonymous said...

Dion is insulated from reality on everything; this is a guy who brags about 12 billion dollars in over taxation

AnonymousCoward said...

As if tax cuts and debt payments are squandering the surplus.