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Originally Posted by Ark2
I'm not really sure how you came to this conclusion. Debt repayment would be part of the federal budget. Planning to have a surplus simply means that you've got this extra money sitting around, doing nothing. It's not like you budget for a surplus and then pay off some debt. You put the debt repayment in the budget, reducing what would otherwise be a surplus.
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Nope, debt repayment is not a budget expenditure, but rather it comes from surpluses. I believe interest on debt, however, is a budget expenditure. Furthermore, I'm pretty sure that not only is debt repayed from surplus, but all surplus goes towards debt repayment by law.
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The surpluses allow the federal government to pay down the national debt, which in turn reduces what Ottawa must pay in interest fees.
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http://www.thestar.com/Business/article/261209
http://en.wikinews.org/wiki/Canada_p...budget_surplus