Plunging oil prices send Harper’s hidden deficit higher

August 24, 2015

Liberals call on Conservatives to come clean on deficit

OTTAWA – Plunging oil prices and the shrinking economy mean the hidden Conservative budget deficit is growing, Liberal candidate for Kings–Hants, Scott Brison, revealed today.

“Canadians already know Stephen Harper was hiding an eighth consecutive deficit; the Parliamentary Budget Officer said so in July,” said Mr. Brison. “Now with plunging oil prices and negative GDP growth, that deficit is becoming even larger. The numbers don’t lie.”

Projected in this year’s Budget to be $54 per barrel in 2015 (Table 2.2 on page 61), the price of oil dropped to $40 last week – its lowest level since early 2009.

And even before the recent drop in oil prices, the Bank of Canada slashed the Budget’s 2 percent growth forecast down to 1.1 percent. Based on the government’s own numbers, even before the recent oil price drop, this equals a new $3.7 billion gap between the truth and Conservative spin. The Parliamentary Budget Officer said in July this gap means the Conservatives are running at least a one billion dollar deficit.

“The government of Canada keeps an up-to-date record on the state of Canada’s finances. Before election day, Stephen Harper must stop misleading Canadians about the deficit and allow our public servants to publish the truth,” said Mr. Brison. “If the Conservatives do not admit to a deficit, we know they’re not telling the truth.”

“The truth is the Conservatives have had eight consecutive deficits including this year, despite Harper’s claims to the contrary,” said Mr. Brison.

Mr. Brison concluded by noting that between Harper and the last Conservative Prime Minister, Brian Mulroney, the Conservatives have contributed $439 billion to the total national debt of $616 billion.