Say Hello To Deficit Jim?

Will our Finance Minister become known as the Deficit Jim?

Finance Minister Jim Flaherty says Canada may run a federal budget deficit in the 2009-2010 fiscal year.

"We're on track to run a small surplus," he told a group of business leaders in Toronto Wednesday. "For next year it's more challenging."
...
He said his government would "redouble" efforts to keep spending under control but warned that attempts to balance the budget at all costs were "misguided."

"What we will never do is engineer a surplus at any price, because that price would ultimately be paid by Canadian families," Mr. Flaherty said in late October.

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Somehow it doesn't sound like Mr. Flaherty is willing to "redouble" his efforts to keep spending over control. Not sure if there's even anything to "redouble". Program spending has skyrocketed from $176B in 2004/05-2005/06 to $208B for 2008/09 with about $218B budgeted for 2009/10.

Canceling spending increases in non-essential programs would provide enough money to offset minor deficit - a move that would be welcomed by Canadians. Going further and slashing projected spendings by 5% (in fact - keeping them at 2008/09 level) would provide a solid safety cushion for Canada's finances. But is Mr. Flaherty ready to go that far? Is he ready to listen to the taxpayers?

I'm not even talking about eliminating wasteful spending completely and revising past spending increases elsewhere. Go as far as bringing program spending back to 1995/96 levels, adjusted to inflation and population growth, with wasteful spending eliminated - and there will be enough money to allow income splitting, to raise personal/spousal exemption to minimum annual wage ($18,000), to triple the child exemption and to direct 1% of the GDP towards debt repayment...

If we had a real leader in charge of the finances - we could look forward for some of those measures to appear in the next budget. But with a Red Tory in charge we could only expect more handouts to special interests, more pathetic attempts to buy votes - even if it results in a budget deficit, higher public debt and higher interest payments.