03 February 2009

Budget stimulus overestimated by one-third

... says economist Dale Orr whose firm, IHS-Global Insight Canada, is often consulted by the Department of Finance.

According to Orr,
the majority of the stimulus from the Jan. 27 budget will be felt in 2010 rather than 2009. That's the reverse of what Ottawa has said will happen.... [Orr also said that] Ottawa put remarkably little effort into justifying the stimulus package's economic impact and job creation forecasts in the budget. "They glossed over it. There's only one page out of 360 pages devoted to this."

Read the whole article. Orr raises numerous points which Flaherty and Company don't appear to have considered. (Go figure; the budget is pretty much smoke and mirrors anyway.)

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