OTTAWA — The Canadian government is once again awash in cash thanks to a much stronger than expected economy.
The budget surplus for fiscal 2007-08 will be much higher than projected, says the Finance Department.
In March, Finance Minister Jim Flaherty estimated the surplus would reach $3-billion.
However, the surplus had already doubled that in the three-month period ending in June.
“For the first three months of the 2007-08 fiscal year, the budgetary surplus is estimated at $6.4-billion,” the department said in a statement.
That's up $0.5-billion from the $5.9-billion surplus reported in the same period last year.
And it comes despite a 7.6 per cent jump in spending in the first quarter on defense, increased transfers to the provinces and territories, and government operating expenses.
The Finance Department has also dramatically revised upward its predictions for economic growth this year.
Comment: Maybe they can spend a little of the surplus on improving Canadian health care but, with that said, perhaps we should invite the Canadian government finance people to spend some time in Washington and Madison and show us how it's done.