Canada to have budget surplus by 2015: Is America paying attention?

While the United States government continues to spend like drunken sailors on shore leave, our neighbors to the north have got their budget all in order, in fact they are expecting surpluses as soon as 2015.

Reuters reported Tuesday that Canada’s Conservative government looks set to comfortably balance its books in 2015 or even sooner–thanks to real cuts in public expenditures, something Washington seems more than willing to avoid, to our own detriment.

According to report:

The budget shows a deficit of C$2.9 billion ($2.63 billion)in the 2014-15 fiscal year, up from the previous estimate of C$5.5 billion. That balance includes a C$3 billion contingency fund, which in fact reveals an underlying surplus that year.

Finance Minister Jim Flaherty acknowledged the budget would be narrowly balanced this coming year without the contingency fund, but said he preferred to have a “nice clean surplus next year”.

The government estimates a bigger-than-expected C$6.4 billion surplus in 2015-16. In the year ending March 31 of this year, the deficit is pegged at C$16.6 billion.

Very impressive. It seems the only way we get any type of cuts in spending here in the states is through sequestration.

This news comes on the same day the US House of Representatives voted to increase the nation’s debt ceiling once again. It now goes to the Senate where Majority Leader Harry Reid said, “We hope this common-sense approach will continue throughout the year so we can actually get some things done.”

Common-sense approach?

What other enormous government spending does Reid have in mind that we can’t afford?

Recent reports show that the US budget deficit will shrink in coming years after several years of deficits of $1 trillion or more.

The Associated Press reports:

The deficit hit an all-time high of $1.4 trillion in 2009, surpassing the old mark of $458.6 billion set 2008. The deficits remained above $1 trillion for four straight years as a deep recession and weak recovery pinched government revenues and forced higher spending for such programs as food stamps and unemployment benefits.

The CBO earlier this month forecast that the deficit will decline to $478 billion in 2015 before starting to rise again in 2016 and keep heading higher for the rest of the decade, topping $1 trillion again in 2022. The increases would reflect the retirement of the baby boom generation, which will push up spending on Social Security and Medicare.

Is America paying attention to Canada? I don’t think so but we better start paying attention.

Maybe we should adopt the attitude of Mr. Flaherty–“Some people will say this budget is boring. Boring is good.”

Image/CIA