Friday, October 31, 2008

Deficit Jim gets thumbs down

Think-tank slams Ottawa for 'imprudent budgeting'

Eric Beauchesne , Canwest News Service
Published: Friday, October 31, 2008

OTTAWA - The federal Conservative government abandoned prudent budgeting just when it was needed, an economic think-tank involved in helping this and previous Liberal governments prepare their budget projections charged Friday.

Not only did the government, against the advice of private sector economists, eliminate the annual multi-billion dollar cushion against the impact of an unexpected economic slump in the last budget but has let spending get out of control as well, Global Insight said in one of the most damning analyses to date of the current government's handling of its finances. MORE...

Cabinet change was needed in finance: Ignatieff

Updated Fri. Oct. 31 2008 8:45 AM ET News Staff

Liberal party deputy leader Michael Ignatieff said the government doesn't have a grasp of the gravity of the situation.

He said it's difficult to trust Flaherty.

"Before the election he kept saying 'No problem, everything's fine, we're not going into deficit.' When the storm hit during the election they said 'Everything's fine, no big problems.' Now they're aware, now they're fessing up that in fact we're going through the most serious economic crisis in 30 years -- and putting Mr. Flaherty in there is saying basically our economic policy is just fine," Ignatieff told Canada AM. MORE...