Statement from the Surrey Board of Trade on Canada’s Annual Financial Report Released Today

-notes federal deficit increase; SBOT urges the federal government to quickly move to a balanced budget

SURREY, B.C. – The Surrey Board of Trade notes that the Federal government’s deficit has increased in the latest Ministry of Finance Annual Financial Report released today due to an accounting process change as recommended by the Auditor General. https://www.fin.gc. ca/n18/18-094-eng.asp. The Annual Financial Report provides an overview of the Government of Canada’s financial results for the fiscal year ended March 31, 2018.

The federal government is catching up on needed infrastructure investments in Canada, including social investments, however, it is still concerning that the deficit is over $19 billion.

The Surrey Board of Trade calls on the government to create the conditions of innovation, leadership, global investment so that Canadian businesses can grow and contribute to a more prosperous economy.

“The Surrey Board of Trade urges the federal government to work towards balancing the federal budget,” said Anita Huberman, CEO, Surrey Board of Trade.

The federal deficit is projected to persist until 2050. The federal deficit is now structural in nature, as future economic growth is not it seems sufficient to generate the tax revenues needed to eliminate the fiscal imbalance.

Paying attention to government deficits is important because it limits business investment and productivity. When governments run deficits, businesses become more cautious on investment because they expect that governments will ultimately need to raise taxes to balance the books.

Also with uncertain global circumstances, we don’t know what impact that may have to economic growth in Canada.

“All the Surrey Board of Trade is saying is that ultimately, sooner rather than later, we need to have a balanced budget and be prepared for any uncertain economic future that we may have.”

The Surrey Board of Trade with its Finance & Taxation Team monitors the finances and budgets of all levels of government, providing comment and advocacy where needed on behalf of over 6,000 business contacts.

—30 —

For more information, contact Anita Huberman – 604-340-3899