Quote:
Originally Posted by belsarius
I thank Makarov's response that maintaining capital spending with a decline in revenue is stimulus.
I also followed it up with a post showing the current budget has a 33% increase in capital plan spending, going from $6.5 to $8.5B.
In the $11B deficit is $2.5B in capital grants (included in the capital plan), $1B in disaster relief, $600M in capital debt servicing. The amortization expense also is mostly related to capital works. That's almost half of the deficit that is not related to operating the government day-to-day.
The operating expense line item is planned for about a 2% increase, which is what they are aiming for, maintaining services with inflation and population increases.
Yes they are running a deficit for operations. But it is not $11B.
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Okay, but thats still like borrowing money to do renovations on your house but not having enough money to pay the mortgage or utilities.
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