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April 25, 2011
Canada's Federal Budget Versus Political Party
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---- The historical data hasn't changed, of course, and neither has the current political party (the Conservative Party of Canada). But in the last two years, our budget surplus/deficit has gone from pretty good to very bad:
Attributing budgets to any one party during a transition year can be difficult, so there is a bit of room for negotiation - given the way that our federal budget cycle works. However, we can see that when Conservatives are in power, we generally can expect deficit budgets, so the country is going deeper into debt. And when the Liberals are in power, we can generally expect surplus budgets, where we end up paying down our federal debt. The interesting question in my mind is what would our federal finances look like with a party other than these two in power? Have the two of them just been playing us all along the whole time? Covering up for each other while letting just a bit of financial scandal to leak out after every change in federal party, so that we're lulled into thinking that they're keeping each other honest? Posted by Hammer at April 25, 2011 06:17 PM |
Leading up to another Canadian federal election, I thought it would be interesting to update the graph that I made in 2009 showing 
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Older Comments
When is the last time a federal conservative party showed a budget surplus?
Posted by: P. D H. | March 5, 2012 05:40 PM
Blaming Trudeau for the debt during his tenure would be the same as blaming Reagan for the debt during this tenure. There was a worldwide recession and most countries earned that kind of debt.
Posted by: AceOfHertz | November 6, 2011 12:43 PM
@BJS
There are two axes on the graph, and the % of GDP axis is on the right.
GDP does not grow at a near constant rate each year, it goes up and down, and in the last decade it has never grown or shrunk as much as 3% in one year. See: http://www.tradingeconomics.com/canada/gdp-growth
Posted by: Hammer | July 19, 2011 08:40 AM
Excuse me if I am wrong...but this graph seems to be impossible by its very nature.
You plot % of GDP and billions of dollars on the same graph...This of course make no sense as GDP grows a few % every year. 10 Billion dollars debt one you is not the same % of GDP as 10 Billion the next?
I want to say it is useful as an approximation, but it isn't even that! If we assume a nice 3% GDP growth per year over this period, there has been a 72% increase in GDP that is not represented in this graph!....
Posted by: BJS | July 19, 2011 06:37 AM
I'm certain including the Trudeau governments would immediately crush this perspective. It would also help to remember that Harper had some budget surpluses, which were partly used to pay down debt. After a major American recession, however, what Canadian government could come out unscathed?
I am looking forward to the update when the Conservatives pay down our current deficit, though.
Posted by: trevalyan | May 28, 2011 10:03 AM
i am relieved to see the proof
Posted by: tiz schiafone | May 3, 2011 07:40 PM
Excellent chart! Just what I was looking for to put the lie to the myth that the Conservatives are somehow more fiscally responsible than Liberals.
Posted by: Graham Sanders | May 2, 2011 10:00 PM