The CBC says :
‘The deficit for the coming 2017-18 fiscal year is projected at $778 million.’
I have a problem with that!
The budget documents of the Government show on Page 290 of the Estimates Document :
Direct Debt for this year at $11,986 Billion
Direct Debt for last year at $10 ,345Billion
A little subtraction gives me: $1, 641 Billion.
That is the amount we will have to borrow given it is new debt ! N’est-ce pas?
IN OTHER WORDS THE DEFICIT FOR THIS YEAR is $1.6 Billion !
That $11, 986 billion does not include other debt that is called self supporting debt which in the end the Province is on the hook for if things go wrong. Include that and the total public debt on page 290 is over $17 billion.
At least that is my reading of it. If someone can show me this is wrong and that it is really only $778 million, I am all ears.
I had inserted here paragraphs on current and capital account and that it seemed to me like other Provinces, the Newfoundland Government was trying to show a lower deficit by not including the capital account in its deficit calculation .
Oh! And there is this little thing called the ATLANTIC ACCORD —well , well, well, —-because of it the Province receives oil royalties just as if they were on land and this past year they were up —and the projected deficit gets a reprieve of hundreds of millions.
Without the Accord —–what a pickle ?
But we are still in a pickle because we are over spending .
We can’t keep the lights on without borrowing even with close to a billion dollars ( $ 902 million projected for this year) in oil royalties!
You can ‘t go on spending more than you take in.
It seems the mentality is that if we get more dollars in revenue , (really only oil revenue of any consequence ,) it automatically means we can even spend more than that and everything is fine.
This is a sad day! We refuse to face the music!
PS For those into numbers:
Estimates Document of this Years Budget :
Page 11–Total Fed?Prov Revenues –$5, 897, 426, 000.
Page 13–Total Current Account Expenditures-$ $6, 743, 660,000.
Difference $846, 234,000. Deficit
Page 14 –Capital Account Net—$801, 600.000
So add $846, 234, 000. and $801, 600, 000.
$1, 647,834, 200. Billion