Friday, April 07, 2006

Sask budget: It's a balanced budget...no, seriously!


For those who keep asking, the Saskatchewan budget is indeed a deficit budget. Over the next two years the government will withdraw $578 million from the "fiscal stabilization fund." The funny thing about the fund is there is no fund. There is no actual bank account where this "rainy day" money is deposited. I've asked the Provincial Auditor, and he can't find it either. The stabilization fund is just government debt, like the rest of government debt. When you pretend to make a withdrawal from it, it shows up on the books as more debt.

Here's the rub: the same "withdrawal" which shows up on the books as increased debt, also shows up as revenue. Now, on page 7 of the budget estimates, the government talks about their accounting policies. They talk about how the government has adoped generally accepted accounting principles EXCEPT when it comes to "transfers" from the fiscal stabilization fund.

So, in order to make their bottom line look better than it really is, they suspend generally accepted accounting principles. They could spend $750 million more than they take in revenues, and still trot out a news release saying "the budget is balanced."

NEW PROVINCIAL BUDGET BUILDS A BETTER FUTURE
Tax cuts for business, more training opportunities for young people, a freezeon tuition fees and support for vulnerable citizens -- those are some of the highlights delivered by Finance Minister Andrew Thomson in Saskatchewan's 13th consecutive balanced budget.

The budget isn't balanced, yet they get away with this propaganda routinely. It's like the Iraqi propaganda minister "Comical Ali" claiming the Americans were being defeated while marines were pouring themselves coffee in downtown Baghdad.

15 comments:

Anonymous said...

Funny how Standard & Poors bond rating agency actually praises the Saskatchewanh Fiscal Stabalization fund.

Funny how Moody's bond rating service continues to praise Saskatchewan's use of the Fiscal Stabalization fund.

Funny how The Dominion Bond Rating Agency praises Saskatchewan's fiscal stabalization fund.

You really should take an Economics 100 class.

I also really admire the photo of yourself that you included with your original post. You are one of the most pathetic, badly educated, badly mannered individuals in your association.

You continue to be the laughing stock of the business world.

Anonymous said...

Mr. Anonymous:

Consider those who vote with their feet.

That should speak VOLUMES about the government's fiscal management.

-Willard

Anonymous said...

too busy to talk at the moment - busy working on the boycott of ALL businesses who contribute to this patheic little farce.

Anonymous said...

fiscal stabilization fund? It's just a line of credit!I don't believe you, provide the link, it it's true! The only people that praise the fiscal stabilization fund are magicians and con-men.

And how many businesses are boycotting Saskatchewan because of you socialists? Weyerheauser is about to be added to the list. So who is left? Mr Hubris and his friends, gorging at the public trough (thanks to non-renewable resources).

Anonymous said...

fiscal stabilization fund? It's just a line of credit!I don't believe you, provide the link, it it's true! The only people that praise the fiscal stabilization fund are magicians and con-men.

And how many businesses are boycotting Saskatchewan because of you socialists? Weyerheauser is about to be added to the list. So who is left? Mr Hubris and his friends, gorging at the public trough (thanks to non-renewable resources).

Adam Taylor said...

"too busy to talk at the moment - busy working on the boycott of ALL businesses who contribute to this patheic little farce."

Bonne Chance!

The CTF didn't originate in Saskatchewan and expand to be a national watchdog by turning off businesses, taxpayers, and ordinary Canadians.

Au contraire mon ami.

Good luck with your witchhunt.

andy charles said...

I just established my own fiscal stabilization fund... I took out a million dollar loan and am officially declaring myself a millionaire.

pense said...

Yeah. Larry should be desperate because the workforce is in decline. But he's not.

Wan't to know why?

Cuz, he doesn't give a shit. What does he care if the province hollows out in a european death-bed style demographics. He'll be dead by then.

My kids wont't. Thanks larry.

Anonymous said...

And pense, I think that it's private sector jobs that are disappearing from SK: the size of teh gov employing Mr Hubris' wards keeps growing.

Rick said...

Anonymous:
Maybe you need to take some economics.
Is your own bugget balanced when you have millions in debt of your own.Fool!!It's time to wake up and smell the coffee!

Rick said...

Anonymous:
Maybe you need to take some economics.
Is your own bugget balanced when you have millions in debt of your own.Fool!!It's time to wake up and smell the coffee!

sask.taxpayers federation said...

We could learn a lot from Europe. The most economicaly stable countries are in western Europe. Most have Social Democratic governments.

Anonymous said...

hey stf, I'm sorry to say that you are a wrong: you ever been to W Europe? I have, many times and often. In responding to the communist threat, they addopted many social democratic policies. Now the communist regimes have collapsed. The Western European countries are facing a huge crisis of their own, France is a good example, where it jsut surrenderedto itself. These countries are colapsing under the wieght of expansive social programs, high unemployment, high regulation, high immigration, low birthrates, low productivity and a declining standard of living. Things are not looking good. It is foolish to cite them as an example to emulate. Europe is sinking, and you, stf, will not have to witness it, you will be long-gone. It will be become painfuly obvious in my lifetime.

sask.taxpayers federation said...

You're full of crap anonymous. You would never admit right wing facists like yourself stagnate progress. You are lost in 1930's thinking. Europe went through what we are going through now 50 years ago. You would not know a good gov't if it slapped you in the face. We've had rotten right wing gov'ts that have ruined health care, made us more dependent on the states and generally are regressive. You make excuses that they inherit debt then why can't they get rid of it? They add to it.
We in Sask have one of the best credit ratings in Canada. So what the hell are you reading? Devine was an economist. He and his cronies couldn't administer an enema. You talk from an American point of view. Americans hate Canada because of our social programs. You quote bond agencies and other American BSers that think George Bush is a great guy.
Does God talk to you. You are just ignorant. No one else even gives you the time of day. You're a little shot talking like a big shot.

Anonymous said...

stf, your zeal far exceeds your intellect: this combination usually causes only problems for other people. You know what I mean?

CTF You Tube Channel

Canadian Taxpayers Federation's Fan Box